China: Manufacturing gauge hits five-month high in May
June 1, 2014
The Purchasing Managers Index (PMI) inched up from 50.4 points in April to 50.8 points in May according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. May’s print just barely overshot the 50.7 points that market analysts had expected and represented the highest level since December 2013. The PMI is still resting just above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has idled since September 2012.
May’s figure reflected an increase in three of the five sub-categories of the index, with new orders recording the largest monthly gain. The production and the supplier delivery time sub-indices also strengthened in May, whereas employment and inventories of finished goods dropped. In addition, new exports orders improved in May, while input prices—a reliable leading indicator for consumer prices—jumped to its highest level in five months.