China’s manufacturing output stabilized in May after posting a decline in economic activity the month prior, SCMP reported.
- The official composite PMI rose to 54.2 in May from 53.8 in April, above the 50 threshold that separates expansion from contraction.
- The service sector index posted a slight decline to 54.3 from 54.4 the previous month, while construction grew to 60.1 from 57.4.
- The official PMI was little changed at 51.0 in May from 51.1 in April, following the seven-day “golden week” holiday in China.
- The decline was partly offset by a growth in consumer activity in non-manufacturing sectors.
- The official non-manufacturing PMI grew to 55.2 in May from 54.9 the month prior. This measures sentiments in services and construction.
- ING Bank Chief Economist for Greater China Iris Pang believes consumers will wait for the long holidays in October to splurge after the spending spree in May.
- Nomura economists believe growth will slow in the second half of the year as pent-up demand subsides and markets shift back to services.