China
2024.05.31 09:37 GMT+8

China's May manufacturing activity falls

Updated 2024.05.31 15:58 GMT+8
CGTN

Within the GAC Aion Smart Eco-Factory, over 600 robots operate in a highly coordinated fashion, following programmed routines as vehicles move rhythmically through various stages of the production line in Guangzhou, Guangdong Province, China, on March 24, 2024. /CFP

China's manufacturing sector experienced a slight decline in May, while the non-manufacturing sector continued to expand, according to indicators from the latest factory survey from the National Bureau of Statistics (NBS) released on Friday.

The official manufacturing purchasing managers' index (PMI) –  a key gauge of sentiment among factory owners – for May stood at 49.5, down 0.9 percentage point from the previous month, NBS data showed. Meanwhile, the non-manufacturing PMI – tracking sentiment in the service and construction sectors – for May was 51.1, a slight dip of 0.1 percentage point from April.

The PMI's 50-point threshold marks the separation between expansion and contraction in activity.

May's decline in the manufacturing sector was attributed to a high base effect from earlier rapid growth and insufficient effective demand, Bruce Pang, chief economist of JLL Greater China, told CGTN.

"While the manufacturing PMI shows some seasonal fluctuations, these are minor and within a generally stable range. The overall trend of economic recovery remains unchanged,"  Zhang Liqun, a researcher with the Development Research Center of the State Council, told CMG.

Looking at the sub-indices, manufacturing production continued to expand with its production index for May coming in at 50.8, supported by policies promoting large-scale equipment upgrades and the replacement of old consumer goods, Zhang added. 

The composite PMI, which includes both manufacturing and non-manufacturing activities, was 51.0 for May, indicating that overall economic output continued to expand, with business production and operations maintaining a recovery trend.

"As various policies continue to take effect, we expect sustained improvement across multiple indicators," said Zhang, adding, "However, this process will require time and greater effort from all parties involved."

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