The China’s manufacturing PMI has improved more than two points in May, rising to 48.1 from 46 in April, equaling the level of March. The result has also improved the 47 points expected by the market, although it remains for the third consecutive month in contraction territory, below 50.
Survey data for May signaled a shift to more stable operating conditions in China’s manufacturing sector, as companies reported noticeably softer declines in both output and new orders.
Businesses also saw a slower reduction in purchasing activity, although supply chain delays remained severe overall. Data showed that the rate of input price inflation moderated but remained strong, although efforts to attract new businesses led to a further drop in sales prices.
Commenting on China’s overall manufacturing PMI data, the Dr. Wang Zhe, Senior Economist at Caixin Insight Groupsaid: “The Covid outbreaks in various regions of China continued to weigh on the economybut the rate of contraction in the sector was lower than that of the previous month”.
“Both supply and demand for manufacturing contracted further. As the latest wave of outbreaks has not subsided, both supply and demand in the market have yet to improve. Both production and total new orders indicators increased in May from a month ago, but remained in negative territory Demand was slightly higher than supply Overseas demand remained weak Measure of new export orders remained in contraction territory for 10 months in a row in May, as the Covid-19 outbreaks continued to affect transportation and logistics,” added Wang Zhe.
Source: Fx Street
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