Key insights
- China's private manufacturing PMI exceeded expectations in May, signaling robust export and domestic demand. This growth, despite a slight cool-down from April, marks the sixth consecutive month of expansion. While input prices remain elevated due to geopolitical factors, the positive manufacturing data, particularly from smaller private firms, suggests a resilient Chinese economy. This could indirectly support global growth and commodity prices, offering a mild positive signal for global equities.
Investing.com-- China’s manufacturing sector grew more than expected in May, private purchasing managers index data showed on Monday, aided chiefly by robust export and domestic demand.
The RatingDog Manufacturing PMI rose 51.8 in May, more than expectations for a print of 51.4.
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While the print did cool from the prior month’s 52.2, it still marked a sixth consecutive month of growth for Chinese manufacturing activity.
New orders rose on both domestic and international demand, although export demand cooled slightly from the prior month, the PMI data showed.
Input prices also remained upbeat amid continued cost pressures from the Middle East war, especially in energy.
The RatingDog data contrasted with official PMI data released on Sunday, which showed Chinese manufacturing activity barely remaining in growth in May.
The RatingDog reading differs from the government PMI on two key fronts– the size and nature of the companies surveyed. The government PMI focuses more on bigger state-run firms in the North, while the RatingDog print focuses more on smaller private companies in the South.
Investors usually use both prints to gain a greater understanding of the Chinese economy.
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