China's economic activity showed a positive trend this May, with the composite purchasing managers' index (PMI) rising to 50.5. According to data released by the National Bureau of Statistics (NBS) on Sunday, this represents a 0.4-point increase from the previous month, pushing the index above the critical 50-point threshold that separates expansion from contraction.
The latest figures reveal a divergence between different sectors of the economy. The manufacturing PMI stood at 50, a slight dip of 0.3 points from April. Conversely, the non-manufacturing PMI climbed to 50.1, gaining 0.7 points month-on-month and returning to expansion territory, suggesting a robust recovery in the service industry.
A significant driver of this growth has been the advancement of new growth engines. Huo Lihui, a chief statistician at the NBS, highlighted that the PMI for high-tech manufacturing reached 52.9, while equipment manufacturing stood at 52.1—increases of 0.7 and 0.3 points respectively over the previous month.
Furthermore, large-scale enterprises continue to show resilience. The PMI for large enterprises rose by 0.9 points to 51.1, maintaining its position in the expansion zone since the start of 2026.
The service sector witnessed a particularly strong upswing. Specifically, sectors such as railway transportation, insurance, telecommunications, broadcasting, television, and satellite transmission all reported PMIs above 55, indicating a major surge in activity. This momentum is reflected in the business expectation index for the service sector, which rose to 54.8, signaling strengthened market confidence among non-manufacturing enterprises.
Reference(s):
cgtn.com
