Data released by Caixin/S&P Global showed that in May, the growth of activity in China's manufacturing sector accelerated moderately, exceeding economists' forecasts and reaching the highest level since June 2022, helped by an increase in production and new orders.
According to the report, the manufacturing PMI rose to 51.7 points from 51.4 points in April. Economists had expected an increase to 51.5 points. The index remains above the 50 point mark, indicating an expansion of activity in the sector, for the 7th month in a row. At the same time, data from Caixin/S&P Global contrasts with official statistics, which showed last Friday that the manufacturing PMI fell to 49.5 in May from 50.4 in April, while economists expected an increase to 50.5.
Today's report showed that in May, production grew at the fastest pace since June 2022, helped by a marked increase in new orders. However, new export orders grew much more slowly compared to the 41-month high in April. Respondents stated that a lackluster global economy remains a constraint. The data also showed that factories stepped up their purchasing activity, with the quantity of purchases accelerating at the fastest pace in three years. Employment continued to contract in May (for the 9th month in a row), but the rate of decline slowed compared to April. As for the inflationary situation, in May the rate of input price inflation was the highest since last October. Meanwhile, sentiment in the manufacturing sector rose in May as companies expected market demand to improve both domestically and abroad.