China's manufacturing sector saw a modest decline in May, while the non-manufacturing sector continued its growth, according to the latest factory survey by the National Bureau of Statistics (NBS).
The official Manufacturing Purchasing Managers' Index (PMI) for May stood at 49.5, marking a decrease of 0.9 percentage points from the previous month. In contrast, the Non-Manufacturing PMI registered at 51.1, a slight dip of 0.1 percentage points from April.
The PMI's 50-point threshold distinguishes between expansion and contraction, indicating that while the manufacturing sector contracted, the non-manufacturing sector remained in expansion territory.
Bruce Pang, chief economist of JLL Greater China, attributed the decline in manufacturing PMI to a high base effect from earlier rapid growth and insufficient effective demand.
However, Zhang Liqun, a researcher with the Development Research Center of the State Council, emphasized that the fluctuations are minor and within a stable range, maintaining that the overall trend of economic recovery in China remains unchanged.
Delving deeper into the sub-indices, manufacturing production continued to grow with a production index of 50.8 in May. This growth was supported by policies aimed at large-scale equipment upgrades and the replacement of outdated consumer goods.
The composite PMI, which combines both manufacturing and non-manufacturing activities, was recorded at 51.0 for May. This suggests that overall economic output is still expanding, with business production and operations maintaining a recovery trajectory.
Zhang added, \"As various policies continue to take effect, we expect sustained improvement across multiple indicators. However, this process will require time and greater effort from all parties involved.\"
Reference(s):
cgtn.com
