Showing signs of a stabilizing economy, China’s manufacturing sector growth accelerated in May to its highest level this year, data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed Sunday.
China’s purchasing managers’ index for May improved to 50.8 from 50.4 in April, showing signs of a pickup in the manufacturing sector and the economy — the third consecutive monthly growth.
The index, a key indicator of how the economy performs, has been on the rise since March after three straight months of decline. The data could well boost markets with expectations that the Chinese economy is well on its way to recovery following measures taken by the government towards its targeted growth.
China’s PMI showed growth in eight of the 12 sub-indices, with the sub-index for production moving up 0.3 to 52.8 after dipping 0.2 in the prior month.
The sub-index for new orders rose by 1.1 to 52.3 in May after gaining 0.6 in April. The sub-index is widely accepted as the most significant among the sub-indices. The export orders sub-index improved by 0.2 to 49.3, reversing a 1.1 slump in April.
The PMI showed employment sub-index to have dropped to 48.2 from 48.3 in April, indicating some contraction in the job market.
The expansion of China’s factory activity to its highest level this year was attributed mainly to growth in new orders, signaling upward growth momentum in the second quarter for the world’s second-largest economy. This could augur well for the beleaguered Chinese economy and improve sentiments over some of the important upcoming economic reports for May, as the PMI is considered one the significant leading indicators to gauge economic momentum.
Published: 2014-06-01 07:35:00 UTC+00
China's PMI For May At Five-Month High
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