China's manufacturing PMI rises to 49.5 in May, up 0.5 points from April

China's manufacturing sector continued to show signs of improvement in May, with production accelerating and market expectations strengthening, according to official data released by the National Bureau of Statistics.

The manufacturing purchasing managers' index (PMI) rose to 49.5 in May, up 0.5 points from April. A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction.

NBS statistician Zhao Qinghe highlighted that the improvement reflects accelerated production and more positive business expectations. The production sub-index increased to 50.7, up 0.9 points from the previous month, indicating faster manufacturing output. The new orders index also climbed by 0.6 points to 49.8.

Notably, the PMI for large enterprises returned to the expansion territory at 50.7, up 1.5 points from April, pointing to improving conditions for major firms. The high-tech manufacturing sector continued its expansion for the fourth consecutive month, reaching 50.9. The sub-indices for the equipment manufacturing and consumer goods sectors rose to 51.2 and 50.2, respectively.

Market expectations also improved over the period. The production and business activity expectation index rose to 52.5, up 0.4 points from the previous month, indicating that manufacturing enterprises maintain steady confidence in near-term growth prospects, Zhao said.

The continued recovery in the manufacturing PMI suggests that the effects of intensified macroeconomic policy measures are beginning to emerge, with improving business expectations and signs of recovery in production activity, analysts say.

The non-manufacturing PMI stood at 50.3 in May, slightly down from 50.4 in April but still in the expansion territory. The service sector maintained steady momentum, supported by holiday-related tourism and catering consumption during the May Day holiday, Zhao noted.

Looking ahead, efforts should be made to boost domestic demand and advance high-level opening up to foster new growth in external demand, thereby reinforcing the country's economic resilience and enhancing its capacity to withstand risks, said Wen Tao, an analyst at the China Logistics Information Center.

Source(s): Xinhua News Agency