China's composite PMI for May rises to 50.5

China's composite purchasing managers' index (PMI) stood at 50.5 in May, up 0.4 points from the previous month and above the 50 expansion threshold, showing an overall increase in business activity, according to data released by the National Bureau of Statistics (NBS) on Sunday.

The manufacturing PMI stood at 50, down 0.3 points from April, while the non-manufacturing PMI came in at 50.1, up 0.7 points month-on-month, back into expansion territory, demonstrating divergence among different sectors.

The development momentum of new growth drivers continued to improve in May, said Huo Lihui, a chief statistician at the NBS, explaining that the PMI for high-tech manufacturing and equipment manufacturing stood at 52.9 and 52.1, respectively, up 0.7 and 0.3 points from the previous month.

Huo also noted that the PMI for large enterprises stood at 51.1, an increase of 0.9  points from April, and has remained in the expansion zone since the beginning of this year.

The PMI for service sectors such as railway transportation, insurance, telecommunications, broadcasting, television and satellite transmission was above 55, as per the NBS, indicating a major upswing.

The business expectation index for the service sector stood at 54.8, up 0.1 points from the previous month, indicating strengthened confidence among non-manufacturing enterprises toward the market.

(With input from Xinhua)