Manufacturing PMI rises to 50.9 in May, thanks to strong and accelerated hike in production
Manufacturing activity in China recovered for the first time in three months in May, according to data released on Thursday.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) increased to 50.9 in May from 49.5 in April, thanks to a strong and accelerated rise in production in the month,financial services company S&P Global reported.
Rising above the neutral level of 50, the figure marked the first improvement in overall manufacturing sector conditions since February.
Fueled by a hike in overall new business amid stronger client demand, production grew at the quickest pace since June 2022 after hitting a three-month low in April.
The rate of new order growth was the second-quickest seen over the past two years in May, read the report.
As a result, the firms accelerated their purchasing activity in the month and increased stocks of inputs.
As capacity at suppliers and material availability were improved, average delivery times for inputs shortened and cost pressure eased in May.
Input costs fell solidly for the second consecutive month in May, the report added.
Despite the rebound in output and demand, business confidence around the 12-month outlook for production dipped to a seven-month low in May amid concerns over lingering global economic uncertainty.