China: Manufacturing PMI falls in May, non-manufacturing PMI ticks up
May 31, 2021
The Manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell to 51.0 in May from April's 51.1. As such, the index remained above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
The fall came on the back of softer new orders growth. In addition, purchasing activity weakened at a sharper pace, both input and output price growth intensified amid higher raw material costs, and export orders fell, potentially amid a resurgence of Covid-19 cases in Asia. However, output growth strengthened. Looking at company size, the PMI for small firms fell, while that for medium and large firms rose.
The non-manufacturing PMI rose from 54.9 to 55.2, thanks to a stronger construction sector.
Author: Oliver Reynolds, Economist