China: PMI surprisingly rises in May
June 1, 2013
In May, the Purchasing Managers' Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) rose to 50.8 points from the 50.6 points recorded in April. The print surprised most market analysts, as they had seen the index falling to 50.0 points. As a result, the PMI remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector for the seventh consecutive month and now sits 0.4 points above the level recorded in the same month last year.
The improvement observed in May was broad-based, as three out of the five sub-categories that compose the index gained some ground over the previous month, while one remained unchanged. The largest increase was seen in the production sub-index, whereas employment deteriorated. Meanwhile, export orders rose over the previous month, albeit remaining in contraction territory, while the input prices category - which is a reliable leading indicator for consumer prices - rebounded from its lowest level since December 2008.