China's Manufacturing PMI Shows Signs of Recovery in May 2025
Manufacturing PMI rises to 49.5 in May, indicating improvements in production and market expectations.
China's manufacturing sector demonstrated signs of improvement in May 2025, with the manufacturing purchasing managers' index (PMI) rising to 49.5, an increase of 0.5 points from April.
A PMI reading below 50 typically suggests a contraction in manufacturing activity, while a reading above 50 indicates expansion.
According to data released by the National Bureau of Statistics, the latest figures reflect enhanced production and more positive business expectations in the manufacturing sector.
The production sub-index rose to 50.7, marking a 0.9 point increase from the previous month and suggesting a faster pace of manufacturing output.
Additionally, the new orders index increased by 0.6 points to 49.8, signaling a minor improvement in new order intake.
Notably, the PMI for large enterprises shifted back into expansion territory at 50.7, showing a 1.5 point increase since April.
The high-tech manufacturing sector maintained its expansion for the fourth consecutive month, reaching a PMI of 50.9. Sub-indices for the equipment manufacturing sector and consumer goods sector increased to 51.2 and 50.2 respectively, indicating robust activity in these key areas.
Market expectations also saw improvement, with the production and business activity expectation index rising to 52.5, up 0.4 points from the previous month.
This reflects a steady confidence among manufacturing enterprises regarding near-term growth prospects, as noted by NBS statistician Zhao Qinghe.
The continued growth in the manufacturing PMI is interpreted as indicative of the early effects of intensified macroeconomic policy measures, contributing to improved business expectations and production activities.
In related data, the non-manufacturing PMI stood at 50.3 in May, slightly down from 50.4 in April but still indicating expansion in the sector.
The service sector is reported to have maintained steady momentum, bolstered by tourism and catering consumption during the May Day holiday period.
Analysts emphasize the importance of boosting domestic demand and furthering high-level openings to foster new growth in external demand, thereby strengthening the nation's economic resilience and capacity to manage potential risks.
A PMI reading below 50 typically suggests a contraction in manufacturing activity, while a reading above 50 indicates expansion.
According to data released by the National Bureau of Statistics, the latest figures reflect enhanced production and more positive business expectations in the manufacturing sector.
The production sub-index rose to 50.7, marking a 0.9 point increase from the previous month and suggesting a faster pace of manufacturing output.
Additionally, the new orders index increased by 0.6 points to 49.8, signaling a minor improvement in new order intake.
Notably, the PMI for large enterprises shifted back into expansion territory at 50.7, showing a 1.5 point increase since April.
The high-tech manufacturing sector maintained its expansion for the fourth consecutive month, reaching a PMI of 50.9. Sub-indices for the equipment manufacturing sector and consumer goods sector increased to 51.2 and 50.2 respectively, indicating robust activity in these key areas.
Market expectations also saw improvement, with the production and business activity expectation index rising to 52.5, up 0.4 points from the previous month.
This reflects a steady confidence among manufacturing enterprises regarding near-term growth prospects, as noted by NBS statistician Zhao Qinghe.
The continued growth in the manufacturing PMI is interpreted as indicative of the early effects of intensified macroeconomic policy measures, contributing to improved business expectations and production activities.
In related data, the non-manufacturing PMI stood at 50.3 in May, slightly down from 50.4 in April but still indicating expansion in the sector.
The service sector is reported to have maintained steady momentum, bolstered by tourism and catering consumption during the May Day holiday period.
Analysts emphasize the importance of boosting domestic demand and furthering high-level openings to foster new growth in external demand, thereby strengthening the nation's economic resilience and capacity to manage potential risks.
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