Advertisement
China’s factory activity swings into surprise growth in May, driven by improved production and demand
- Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 50.9 last month, up from 49.5 in April
- Reading is in stark contrast to the official manufacturing PMI, which fell to 48.8 in May from 49.2 in April
Reading Time:2 minutes
Why you can trust SCMP
3
China’s factory activity unexpectedly swung into growth in May from decline, a private sector survey showed on Thursday, driven by improved production and demand, helping struggling firms that have been hit by slumping profits.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 50.9 in May from 49.5 in April, above the 50-point index mark that separates growth from contraction.
The reading surpassed expectations of 49.5 in a Reuters poll, a stark contrast to a deeper contraction activity seen in the official PMI released on Wednesday.
Advertisement
China’s recovery from its strict coronavirus curbs has been fragile and uneven, with economic indicators for April showing imports, factory gate prices and property investment all falling.
We need more time to see whether the improvement would be sustained, but it is a piece of good news for the Chinese economy
“We need more time to see whether the improvement would be sustained, but it is a piece of good news for the Chinese economy,” Zhou Hao, economist at Guotai Junan International, said.
Advertisement
“Further policy support is still required to boost domestic demand, we reckon a 10 basis points [medium-term lending facility] rate cut in June.”
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x