China: Manufacturing PMI steady in May
June 1, 2016
The Purchasing Managers’ Index (PMI) in May remained at last month’s 50.1%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print overshot the 49.9% that market analysts had expected. As a result, the PMI is sitting barely above the 50%-threshold that separates contraction from expansion in the manufacturing sector.
May’s reading reflected a sizeable deterioration in new orders. The remainder of the main components of the index gained ground compared to the previous month, with job conditions reaching a one-year high. Input prices—a reliable leading indicator for consumer prices—remained comfortably above the 50%-mark, suggesting that inflationary pressures are gradually increasing. New export orders declined in May to neutral, signaling that global demand is still weak.