A private-sector index of China’s manufacturing activity surpassed the expansion-contraction milestone in May. It was an unexpected improvement that contradicted previously released government data.
The Caixin Manufacturing Purchasing Managers Index (PMI), released on Thursday, rose to 50.9 in May from 49.5 in April. The median estimate of Bloomberg economists was 49.5. The boundary between activity expansion and contraction is 50.
The manufacturing PMI for May, announced by the National Bureau of Statistics on May 31, fell below 50 for the second consecutive month, while the index for the non-manufacturing industry also declined from the previous month, raising concerns about the deterioration of the Chinese economy. The latest Caixin PMI provides some relief to investors, but manufacturers remain cautious about the future. Caixin’s index is smaller than the statistics bureau’s PMI and covers mostly export-oriented companies.
Zhou Hao, chief economist at Guotai Jun’an International, said May’s Caixin manufacturing PMI suggested the export sector may have performed relatively well, adding: “Time to see if the improvement is sustained. is needed,” he said.
Original title:China Factory Activity Expands Moderately, Caixin Survey Shows(excerpt)
(This article partially uses automatic translation)
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