China: PMI inches up in May
June 1, 2015
The Purchasing Managers’ Index (PMI) inched up in May, rising from April’s 50.1% to 50.2%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. As a result, the PMI remains slightly above the 50%-threshold that separates contraction from expansion in the manufacturing sector for the third consecutive month. The print slightly undershot the 50.3% that market analysts had expected.
May’s reading reflected a broad-based improvement as four of the five components that make up the overall index recorded higher readings compared to the previous month. The supplier delivery times and the new orders categories experienced the largest gains, followed by production and job conditions. Inventories was the sole category that was unchanged over the previous month. Although the input prices—a reliable leading indicator for consumer prices—hit a 10-month high, the variable remains below the 50%-threshold. A looser monetary policy and a bolder fiscal stance are shoring up the manufacturing sector.