May PMI expands as policies bear fruit
CHINA’S factory and service sector activities expanded in May amid government policies to coordinate growth and control of the COVID-19 epidemic, official data showed yesterday.
The purchasing managers’ index for China’s manufacturing sector and that for the non-manufacturing sector both stood above the boom-bust line of 50 in May, indicating steady recovery in major industries, data from the National Bureau of Statistics showed.
While the manufacturing PMI eased to 50.6 in May from 50.8 in April, it still indicated an upward trend in economic growth as counter-cyclical adjustment policies gradually took effect, said Wen Bin, chief analyst at China Minsheng Bank.
China has been walking a fine line in balancing epidemic control and economic recovery, with targeted measures introduced to help firms safely restart their businesses.
Of the surveyed manufacturing firms, 81.2 percent saw over 80 percent of their business operation resume in May, NBS data showed.
Domestic demand bounced back, with the index measuring new orders in 12 of the 21 surveyed manufacturing industries picking up, NBS senior statistician Zhao Qinghe noted. The sub-index gauging firms’ expectations for business activities ticked up 3.9 percentage points to 57.9, indicating improved confidence among manufacturing companies.
The data also showed that the PMI for China’s non-manufacturing sector came in at 53.6 in May, up from 53.2 in April.
The sub-index for business activities in the construction sector saw accelerated pace of growth in May, expanding 1.1 points from the previous month to 60.8, while that for the service sector steadily recovered, edging up 0.2 points from April.
As China further implements proactive fiscal policy after the annual sessions of the national legislature and political advisory body, the construction industry is expected to see sound growth momentum, Wen said.
Premier Li Keqiang said China will blaze a path of shock-resilience and positive growth cycles which will center on stabilizing employment, energizing the market, stimulating demand and achieving stable growth.
(Xinhua)