01:50
Activities in China's factory and service sectors both expanded in May, as official PMI data showed on Thursday that the manufacturing PMI grew at its fastest pace in eight months. Let's take a look.
The official Purchasing Managers' Index released on Thursday rose to 51.9 in May, from 51.4 in April, and remained well above the 50-point mark that separates growth from contraction for the 22nd straight month. Production expanded at the fastest rate in six months while growth in new orders rose to an 8-month high. Export orders also accelerated from the previous month. Meanwhile, activities in raw material industries like oil and steel all rose to high levels.
ZHAO QINGHE, STATISTICIAN NATIONAL BUREAU OF STATISTICS "With a rebounding market demand, as well as impacts from rising bulk commodity prices, the indices of major material import price and producer price both stayed high at above 60."
Official data showed that China's service sector also picked up pace in May, with the non-manufacturing PMI edging up to 54.9 from 54.8 the previous month. High-end service sector which is related to upgraded consumption and people's daily lives kept fast growth, with the index registering above 60.
ZHAO QINGHE, STATISTICIAN NATIONAL BUREAU OF STATISTICS "Development in sectors like air transport, express mail, telecommunication and internet were very strong."
Activities in capital market and residential life service fell in May, while the real estate sector, which was in contraction for months, has rebounded for the second month. Analysts say increased new orders in the property market is only a sign of recovery, and the sector will keep steady growth in the following months.