According to the South China Morning Post, the National Bureau of Statistics announced today that the official manufacturing Purchasing Managers’Index (PMI) fell to 48.8 in May from 49.2 last month, the lowest level since December last year. A PMI index above 50 indicates growth, while a PMI index below 50 indicates contraction. In the official manufacturing PMI index, the new orders sub index for May decreased from 48.8 last month to 48.3, while the new export orders sub index decreased from 47.6 to 47.2. At the same time, the official non manufacturing PMI index, which measures the service and construction industries, continued to grow, but after falling from 56.4 last month to 54.5 in May, the expansion rate also slowed to its slowest level in four months. Analysts say that China’s manufacturing industry is facing the risk of a “spiral decline”, with weak demand being the main reason for further contraction of factory activity in May.
The economic recovery has also been hit by factors such as rising youth unemployment, weak retail sales, and industrial production. The official comprehensive PMI index, which includes manufacturing and service industry activities, fell to 52.9 in May, down from 54.4 in April. Supporting trade is one way to support the overall economic recovery, but due to weak global demand, export data has been unstable. Although China’s exports increased by 8.5% year-on-year in April, the growth rate was slower, and analysts predict that overseas shipments will be further troubled. Official data shows that retail sales in April decreased by 7.8% compared to March.
Post time: Jun-01-2023