China May Manufacturing PMI 51.0... Expected 51.1 (Summary)

May Non-Manufacturing PMI at 55.2, Up from 54.9 in Previous Month
Foreign Media: "Rising Raw Material Prices May Burden Chinese Manufacturing"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Suhwan] China's National Bureau of Statistics announced on the 31st that the Manufacturing Purchasing Managers' Index (PMI) for May was recorded at 51.0.

This is a slight decrease from the previous month's 51.1 and falls short of the forecasted 51.1.

The PMI, which indicates manufacturing business trends, signifies expansion when above the baseline of 50 and contraction when below. The PMI is calculated based on corporate surveys regarding new orders, shipments, and inventory levels.

ING Group stated that the slight decline in China's manufacturing PMI in May was a temporary phenomenon caused by reduced factory operations and product orders during the holiday period.

However, foreign media pointed out that ongoing supply shortages in China's manufacturing sector and the continuous rise in raw material prices could act as burdens on China's manufacturing industry. Previously, Chinese authorities also expressed concerns about rising raw material prices and announced plans to actively crack down on activities disrupting the raw material market.

Additionally, the non-manufacturing PMI for May recorded 55.2, an increase from April's 54.9. The non-manufacturing PMI covers the construction and service industry sectors.

ING Group analyzed that "the increase in consumer spending during the May Labor Day holiday is reflected in this non-manufacturing PMI."

Earlier, China recorded an economic growth rate of 18.3% in the first quarter of this year, marking the highest quarterly GDP growth since quarterly GDP statistics began in 1992.

The South China Morning Post (SCMP) analyzed, "It appears that China's economy is stabilizing in May," adding, "Although the manufacturing PMI slightly declined, the non-manufacturing PMI offset this."

This content was produced with the assistance of AI translation services.