China PMI May 2020


China: Manufacturing PMI softens in May

May 31, 2020

The manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell from 50.8% in April to 50.6% in May. The print was below the 51.0% expected by market analysts. Despite the decline, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector.

May’s print reflected lower readings in three out of the five sub-components, with job prospects and inventories leading the pack. Despite losing steam, the loss in production was less pronounced. On the upside, new orders increased in May. Weak global demand continued to weigh on new export orders, while low oil prices kept input prices—a reliable leading indicator for producer inflation—at low levels.

FocusEconomics Consensus Forecast participants expect industrial production to rise 1.1% in 2020, which is down 2.4 percentage points from the previous month’s forecast. In 2021, the panel sees industrial production growth at 7.7%.

Author: Ricard Torné, Lead Economist

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China PMI Chart

China PMI May 20 20

Note: Purchasing Managers’ Index. Readings above 50% indicate an expansion in the manufacturing sector while readings below 50% indicate a contraction.
Source: National Bureau of Statistics of China (NBS) and the China Federation of Logistics and Purchasing (CFLP).

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