The services PMI improves expectations and rises to 55.2 in May, the manufacturing indicator contracts
The China Manufacturing PMI it fell one tenth in May, standing at 51 points compared to 51.1 previously and forecasted. This is the second consecutive month of decline for the indicator, which has obtained its weakest result since February, although it remains in expansion territory.
The Non-manufacturing or service PMI, for its part, jumped to 55.2 in May from 54.9 in April, exceeding the 52.7 expected.
“The recent stronger growth in the services index indicates that this sector is catching up and the recovery is balancing out,” according to Westpac analysts.
As for the manufacturing sector, there were already signs that manufacturers are cutting inventories, for example in steel and coal, rather than producing more, analysts at TD Securities explained.