The purchasing managers' index (PMI) for China's manufacturing sector stood at 50 in May, down 0.3 percentage points from the previous month, official data showed Sunday.
A reading above 50 indicates expansion, while one below 50 reflects contraction.
This sector saw sustained expansion in manufacturing output and a softening in market demand in May. The production sub-index came in at 51.2, while the new orders index stood at 49.9, according to data jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing. "In terms of industries, the production index and new order index of sectors including pharmaceuticals, railway, shipbuilding, aerospace equipment, and computer, communication and electronic equipment were all above 53 percent, indicating that both production and demand sides of these industries are relatively active," said Huo Lihui, a chief statistician at the NBS.
New growth drivers continued to gain traction. High-tech manufacturing posted a PMI reading of 52.9 in May, rising from 52.2 in April, while equipment manufacturing recorded a PMI of 52.1, following a reading of 51.8 in the previous month, with both staying firmly in expansion territory.
"The purchasing managers' index for the equipment manufacturing and high-tech manufacturing industries continued to rise, pointing to the strong growth momentum on both the supply and demand sides and resilient exports of the new growth drivers, as well as the further consolidation of the overall momentum for the manufacturing industry to move towards new and better development," said He Hui, vice president of the CFLP.
In May, the index for production and business activity expectations stood at 53.9 percent, the second highest level recorded this year, indicating that manufacturing enterprises maintain a relatively optimistic outlook for the market.
Among them, the sub-index of the equipment manufacturing industry and the high-tech manufacturing industry recorded high levels of over 57 percent and over 55 percent, respectively, indicating that industries driven by new growth drivers are particularly optimistic.
China's manufacturing PMI stands at 50 in May
