China Caixin PMI shows surprise jump in May
Factory activity in China showed an unexpected jump to growth in May from decline, according to a private sector survey published on Thursday, as demand and production improved.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 50.9 in May from 49.5 in April and above forecasts of 49.5.
A reading above 50 indicates growth. The print is a sharp contrast to an official PMI released on Wednesday that showed a sharp fall in factory activity suggesting that China’s recovery was stalling.
The official manufacturing PMI dropped to 48.8 in May from April’s 49.2, the lowest level since December, when China ended most of its pandemic measures, according to the National Bureau of Statistics. It was the second contraction in as many months.
The Caixin PMI focuses on more export-oriented and small firms in coastal regions.
Reporting by Frank Prenesti for Sharecast.com