China's Manufacturing PMI Increases To 49.5 In May, Signalling Economic Improvement

China's manufacturing sector showed signs of improvement in May, with the purchasing managers' index (PMI) reaching 49.5, a rise of 0.5 points from April. This data suggests a stabilisation in economic operations and an uplift in industry prosperity. The PMI is a key indicator of economic activity, reflecting survey responses on production, new orders, and inventories.

The production index climbed to 50.7 percent in May, marking a 0.9-point increase and indicating accelerated manufacturing activities. The China Federation of Logistics and Purchasing, along with the National Bureau of Statistics' Service Survey Center, released this data. Additionally, the sub-index for new orders rose to 49.8 percent, up by 0.6 points from April.

"In terms of industries, the production index and new order index of sectors such as agricultural and sideline food processing, dedicated device, and devices for railway, shipbuilding and aerospace are all above 54 percent, which indicate that both supply and demand in these industries are growing rapidly," said Huo Lihui, head of business climate survey division of the Service Survey Center under the National Bureau of Statistics.

According to China Central Television (CCTV), May saw a recovery in import and export indices. The new export orders index increased by 2.8 points to reach 47.5 percent compared to April. Meanwhile, the import index experienced a rise of 3.7 points to stand at 47.1 percent.

The market outlook also improved with the expected index for production and business activities rising to 52.5 percent in May, up by 0.4 points from April's figures.

"The expected index has also rebounded, indicating that the overall market is increasingly optimistic about the future economic performance. The Chinese economy has maintained very stable operation and demonstrated further enhanced resilience," said Cai Jin, chairman of China Federation of Logistics and Purchasing.

With inputs from WAM