China: CKGSB Business Conditions Index plunged further in July
This marks the fifth consecutive month of decline; the decline in sales and profit being the main factors.
The business conditions index (BCI), a forward-looking indicator developed by Cheung Kong Graduate School of Business (CKGSB), plunged further to 54.64% in July from 54.9% in June, marking the fifth consecutive month of decline; the decline in sales and profit being the main factors.
The aggregate BCI index is calculated by averaging its four constituent indices of sales, profit, financing environment and inventory. The CKGSB BCI surveys enterprises and uses the same methodology as the PMI index, with 50 being the threshold to separate expansion from contraction.