China’s manufacturing sector experienced a slight dip in activity in May, while the non-manufacturing sector continued its steady expansion, according to the latest data released by the National Bureau of Statistics (NBS) on Friday.
The official Manufacturing Purchasing Managers’ Index (PMI), a key indicator of factory activity, stood at 49.5 in May, a decrease of 0.9 percentage points from April. A PMI reading above 50 indicates expansion, while below 50 signals contraction. Despite the slight decline, experts view the change as a minor fluctuation within a stable range.
“The dip in the manufacturing PMI is largely attributed to seasonal factors and a high base effect from earlier rapid growth,” said Bruce Pang, Chief Economist of JLL Greater China. “These fluctuations are minor, and the overall trend of economic recovery remains unchanged.”
The non-manufacturing PMI, which reflects business sentiment in the service and construction sectors, registered at 51.1 in May, slightly down by 0.1 percentage points from the previous month. The composite PMI, combining both manufacturing and non-manufacturing activities, remained in expansion territory at 51.0, indicating that China’s overall economic output continues to grow.
Zhang Liqun, a researcher with the Development Research Center of the State Council, expressed optimism about the steady growth. “Manufacturing production continues to expand, supported by policies promoting large-scale equipment upgrades and the replacement of old consumer goods,” Zhang noted. “As various policies continue to take effect, we expect sustained improvement across multiple indicators.”
Looking ahead, analysts believe that while recovery will require time and concerted efforts, China’s economy is on a solid path. “The process will require greater effort from all parties involved,” Zhang added. “However, the foundation for a sustained recovery is being strengthened.”
Reference(s):
cgtn.com
