China factory activity soars again
In May, activity in Chinese manufacturing sector suddenly surged for the third month. However, growth is quite weak due to softening orders. As follows from this, the number two economy is still trying to regain traction.
The PMI was intact from April, trading at 50.1 last month, which is higher than the 50-mark, separating expansion in activity from contraction on a monthly basis.
Financial experts surveyed by Reuters had expected it to descend to about 50.
The output sub-index edged up to 52.3 compared to April’s reading of 52.2. it clearly indicates that production is still solid notwithstanding the government’s efforts to tame overcapacity, affecting some sectors, such as coal and steel.
However, total new orders grew at a slower tempo, while growth in export orders stood still. Manufacturers kept shedding jobs, though not as fast as in April. As for the employment sub-index, it appeared to be 48.2, compared with 47.8 last month at the slowest tempo for 12 months.