China: Manufacturing PMI softens in May
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.