Bulk Commodity Index(BCI) is the monthly index to monitor China macro-economy. Its mechanism is as follows:
Select 100 commodities which covers Oil, Energy, Petrochemicals, Textiles, Metals, Non-ferrous and mostly represent the above 8 industries
Count the rising number(RN) and the falling number (FN)
Calculate the value of BCI by the formular of BCI=(RN-FN)/100
Based on the above mechanism, the BCI can show 3 points:
BCI>0 indicates that China manufacturing industry economy is expanding;
BCI=0 indicates that China manufacturing industry economy remains steady.
<0 indicates that China manufacturing industry economy is shrinking.