China: Manufacturing PMI stabilizes at six-month low in May
May 31, 2017
The manufacturing Purchasing Managers’ Index (PMI) was stable at April’s 51.2% in May, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading was above the 51.0% that market analysts had expected and stayed at the lowest level since October 2016. Nevertheless, the index rests comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
May’s reading reflected declines in production and the supply delivery times category, with both sub-components hitting a four-month low. All-important new orders steadied in May, while inventories and employment gained ground. Input prices—a reliable leading indicator for producer prices—dipped below the 50%-mark for the first time in over one year, corroborating that inflationary pressures remain weak. After falling to a seven-month low in April, new exports inched up in May.