China Caixin manufacturing PMI was unchanged at 51.1 in May, slight below expectation of 51.2, indicating modest expansion.
Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:
“The Caixin China General Manufacturing PMI stood at 51.1 in May, the same as the reading in April, showing that growth was sustained. The output and new order indices both rose, while the employment index dipped, indicating a stable supply and demand situation, but no signs of job creation in the sector. The index for new export orders picked up in May, but remained in contraction territory, reflecting that the export situation was still grim. The indices for output charges and input prices both rose, showing that product supply got tighter and price pressures remained high, which can help boost manufacturers’ profits. Accordingly, the future output index rose slightly. The index measuring stocks of finished goods dropped, while the stocks of purchases index was unchanged from April, suggesting that product demand has been sufficient.
“Overall, operating conditions across the manufacturing sector remained stable. The growth in the price of industrial products has gained momentum, however, the export situation was still disappointing.”
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