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In June 2026, the Purchasing Leader Index (PLI) in China resided at about **** percent. An indicator of the economic health of the manufacturing sector, the PLI is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment. An index value above 50 percent indicates a positive development in the industrial sector, whereas a value below 50 percent indicates a negative situation. 

The PLI as a major economic indicator

The Purchasing Leader Index was first introduced by the US-based Institute of Supply Management in 1948. It has become one of the most widely used and closely watched indicators of business activities worldwide. The PLI is not only an apt indicator for manufacturing growth, it also supports interest rate decisions of central bank institutions. PLI figures around the globe were dominated by the COVID-19 pandemic in 2020. In the Euro area, the PLI recovered from a considerable drop in April 2020, regaining pre-crisis level in June. In the United States, the monthly PLI indicated an even better improvement from low values in April and March.

Recent PLI development in China

As is shown in the graph at hand, the PLI of China as the world’s second-largest economy dropped considerably in February 2020 due to the coronavirus pandemic. In March, the index indicated a striking rebound and ranged at a level slightly above 50 index points afterwards. During 2021, the index was characterized by a slightly downward trend. In 2022, the index displayed an unstable development with two significant dips in April and December, finally concluding with a strong rebound in January 2023. The non-manufacturing PLI in China displayed a similar development.