Purchasing managers’ index (PMI) data for May from China’s National Bureau of Statistics (NBS).
Manufacturing PMI 50.6
- expected 51.1, prior 50.8
- expected 53.5, prior 53.2
- prior 53.4
Expansion for the manufacturing sector continued in May, although by a smaller margin than in April. Just over 80% of manufacturing business has now resumed says the NBS. Of the sub measures for this sector:
- production down 0.5 points to 53.2
- new orders + 0.7 to 50.9
- new orders in 12 of the 21 sectors picked up
- new export orders hit 35.3, a record low (global demand slumped)
For the services sector, expansion at a quicker rate in May than April. This will be welcome and should be read as further sign of a pick up in domestic demand. Respondents though were wary, over half of service sector firms reported insufficient demand in May. The NBS noted slow recovery only, especially for tourism, sports and entertainment.
Construction industry activity index in May 60.8 (59.7 in April)
- new orders 58.0 (from 53.2)
I don’t suspect too much FX impact from this mixed result. We’ll soon find out, Monday morning trade is not far away!
We now await the next round of PMIs, the privately surveyed Caixin/Markit indicators.
Due at 0145GMT on:
- June 1 (manufacturing)
- and June 3 (services)
I’ll have more to come on these separately.