Latest News:  


Official PMI data surprises with more cheerful May

By Li Qiaoyi (Global Times)

08:45, June 03, 2013

China's factory sector expanded more than expected in May, official data showed over the weekend, injecting some optimism into the world's second largest economy after a private survey dealt a blow to economic sentiment in China.

The official purchasing managers' index (PMI) was announced Saturday by the China Federation of Logistics and Purchasing to have picked up to 50.8 in May from 50.6 in April. The May reading was above a market consensus of 50.0.

A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 points to contraction.

"The moderate jump is mainly driven by rising output and a rebound in input prices during May," Yang Weixiao, a senior macroeconomic analyst with Lianxun Securities Co, told the Global Times Sunday.

The output sub-index rose by 0.7 points in May from the previous month, while the input price sub-index climbed by 5 points month-on-month, according to the federation.

The slightly more cheerful reading came after the HSBC flash PMI reading for May released on May 23 slipped to a seven-month low of 49.6.

"Market fears of a further growth slowdown will be alleviated and we expect a positive market reaction next Monday," Lu Ting, China economist with Bank of America Merrill Lynch in Hong Kong, said in a research note sent to the Global Times over the weekend.

But despite the improvement seen in the PMI reading from April to May, Lu said in the note that it is not really that impressive.

Rising output versus almost unchanged new orders indicates manufacturers have largely been drawing from existing stockpiles whereas they lack confidence about the future business climate, Lianxun Securities' Yang said.

The rebound in input prices is mostly likely to be correlated to a pickup in recovery seen in the US economy that is leading to a spike in global commodity prices, he said, noting that "the stronger-than-expected official PMI reading shows little improvement from inside the economy."

The sub-index measuring employment also saw a slide in May, an indication of sluggish activity in the nation's factory sector.

We Recommend:

Intelligent & beautiful Asian business women

19-year-old self-made multimillionaire

55th Housing Fair held in E China's Jiangsu

Top 10 instant noodles of all time

Eye-catching models highlight house fair

'Lipstick effect' hits China as economy slows

10 million-yuan bra shines in North China

Top 10 most competitive cities in China in 2013

Hot atmosphere at Int'l Brand Underwear Fair

Email|Print|Comments(Editor:ChenLidan、Gao Yinan)

Leave your comment0 comments

  1. Name


Selections for you

  1. Live fire drill of China's Air Force

  2. International Children's Day around world

  3. 17th Gay Pride Parade held in Sao Paulo

  4. 47,000 tons of grains swept in NE China fire

  5. Mini copy of huge rubber duck in Wuhan

  6. Bamboo-made electronic products highlight Beijing Fair

  7. "Wide and Narrow Alleys" in Chengdu

  8. Children's Wear Design Contest

  9. Fortune Global Forum to be held in Chengdu

  10. View of Hefei Xinqiao International Airport

Most Popular


  1. News Analysis: No need to pit China against US
  2. China, US should head towards the same direction
  3. Stronger dollar serves as damper on gold prices
  4. Who needs a diploma? just want to marry rich
  5. Acquisition to sharpen Shuanghui's edge
  6. Manipulative kids seek gifts on Children's Day
  7. Japan, India eager to forge closer ties
  8. Abducted kids' return not always a happy ending
  9. Family pressure forces marriage with laowai
  10. Hot money behind rising yuan

What’s happening in China

Kids in quake-hit Lushan mark children's day in makeshift houses

  1. Unmarried mothers would be fined by new law
  2. Recalled in Taiwan, sold on mainland
  3. Heavy rain continues in S China
  4. 1 dead, 4 missing in NE China shipwreck
  5. Nurse sacked after slashing face of child patient