Amid a turbulent global economy, the Chinese mainlands purchasing managers index (PMI) in May offered a promising snapshot of resilience. After slipping in April, the manufacturing PMI climbed to 49.5 a 0.5-point gain while the non-manufacturing business activity index held steady at 50.3. The composite PMI rose to 50.4, signaling overall expansion.
Policy Moves Fuel a Rebound
Domestic policy is at the heart of this turnaround. Following the CPC Central Committees call for stronger counter-cyclical adjustments, the Peoples Bank of China cut interest rates and reserve requirements. These steps pumped fresh liquidity into markets and helped stabilize activity.
Exports Bounce Back
On the trade front, thawing tensions between the Chinese mainland and the United States boosted new export orders. Key indices for both exports and imports ticked upward, reflecting stronger demand abroad and smoother supply chains.
Sector Highlights
- Manufacturing production index: improved to 50.7
- Equipment and high-tech manufacturing: maintained robust growth
- Consumer goods manufacturing: showed steady gains
- New order index: edged closer to expansion at 49.8
Both large and small firms reported better conditions, and sentiment among businesses rose as they looked toward the remainder of the year.
Reading the Data
While the manufacturing PMI remains below the 50-mark that separates contraction from growth, the upward trend points to a market finding its footing. For global markets and investors, these figures underscore the Chinese mainlands efforts to counter external headwinds with targeted policy support.
As the world watches, the Chinese mainlands economic journey continues to be a key driver of global growth a story of cautious optimism in uncertain times.
Reference(s):
May PMI: A glimpse into China's economic resilience and challenges
cgtn.com
