China's Manufacturing Sector Contracts... May PMI at 49.5

China's manufacturing sector has returned to a contraction phase after three months.

On the 31st, the National Bureau of Statistics of China announced that the Manufacturing Purchasing Managers' Index (PMI) for May recorded 49.54. This figure is below both the market forecast (50.5) and the previous month's figure (50.4).

[Image source= Xinhua News Agency]

The manufacturing PMI is compiled based on surveys conducted with purchasing managers from 3,200 companies, including large state-owned enterprises, and is a representative indicator of the economic trend in the related sector. A number above 50 indicates an expansion phase, while below 50 indicates a contraction phase.

The manufacturing PMI, which had fallen below the baseline since October last year, showed an expansion trend with 50.8 in March and 50.4 in April. However, it has turned downward again, falling below the baseline after three months.

The non-manufacturing (service) PMI announced on the same day recorded 51.1, falling short of the forecast (51.5) and the previous month's figure (51.2).

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