Index rises on new orders; employment still lags
The preliminary Purchasing Managers Index for Chinese manufacturing in May beat expectations with a five-month high, suggesting the world’s second-largest economy is stabilizing.
The PMI, released by HSBC Holdings Plc and Markit Economics, was 49.7, compared with a 48.3 median estimate from analysts. April’s final reading was 48.1. Still, a reading below 50 reflects contraction. A final May reading is expected on June 3.
“Tentative signs of stabilization are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs,” HSBC economist Qu Hongbin said.
Output and orders rebounded. The new order sub-index rose to 50.2 from 47.4 in April, the highest reading so far this year. (Photo 1)