Chinese government website: Main indicators rebound and improve, overall output of China's economy maintains expansion - perspective on May PMI data

According to data released by the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing on May 31, the Purchasing Managers' Index (PMI) of the manufacturing industry increased by 0.5 percentage points compared to the previous month, and the comprehensive PMI output index increased by 0.2 percentage points compared to the previous month. The main indicators have rebounded and improved, and China's overall economic output has maintained expansion.

Statistics show that in May, the manufacturing PMI was 49.5%, indicating an improvement in the economic situation compared to the previous month.

From the changes in sub indices, overall demand is stabilizing, enterprise production has stopped declining and rebounded, new driving forces continue to develop positively, large enterprises are recovering and improving, small enterprises have improved, and enterprise expectations have rebounded, "said Wen Tao, an analyst at China Logistics Information Center.

With the important consensus reached in the high-level economic and trade talks between China and the United States and the implementation of mutual tariff reduction measures, the downward trend of China's manufacturing exports slowed down in May, and the new export order index was 47.5%, an increase of 2.8 percentage points from the previous month. Combined with the stable release of domestic demand, the overall market demand is stabilizing, and the new order index is 49.8%, an increase of 0.6 percentage points from the previous month.

The stabilization of market demand has driven the production activities of manufacturing enterprises to stop declining and rebound. In May, the manufacturing production index was 50.7%, up 0.9 percentage points from the previous month, but briefly fell below 50% before returning to the expansion range. The raw material procurement activities have correspondingly stabilized, with a procurement volume index of 47.6%, an increase of 1.3 percentage points from the previous month.

From the perspective of key industries, the PMI for high-tech manufacturing in May was 50.9%, maintaining an expansion range for four consecutive months; The PMI for equipment manufacturing and consumer goods industries were 51.2% and 50.2%, respectively, up 1.6 and 0.8 percentage points from the previous month. Among them, the production index of equipment manufacturing industry increased by more than 4 percentage points compared to the previous month, and remained at 50% or above for 10 consecutive months; The production index of consumer goods manufacturing industry has increased by more than 1 percentage point compared to the previous month, running in the expansion range for 15 consecutive months.

From the perspective of the operation of enterprises of different sizes, in May, the PMI of large enterprises was 50.7%, an increase of 1.5 percentage points from the previous month, returning to the expansion range. Their production index and new order index were 51.5% and 52.5%, respectively, an increase of 1.7 and 3 percentage points from the previous month; The PMI for medium-sized enterprises was 47.5%, a decrease of 1.3 percentage points from the previous month; The PMI for small businesses was 49.3%, up 0.6 percentage points from the previous month, indicating an improvement in the economic situation.

Enterprises' expectations for the future have rebounded. In May, the expected index of manufacturing production and operation activities was 52.5%, an increase of 0.4 percentage points from the previous month. Among them, the expected index of production and operation activities in industries such as agricultural and sideline food processing, refined tea for food and alcoholic beverages, automobiles, railways, ships, aviation and aerospace equipment, etc., continues to be above 56% in the high prosperity range.

In May, the non manufacturing business activity index was 50.3%, slightly down 0.1 percentage points from the previous month and still above the critical point, continuing the overall expansion trend. Among them, the service industry business activity index was 50.2%, an increase of 0.1 percentage points from the previous month; The business activity index of the construction industry was 51%, a decrease of 0.9 percentage points from last month.

From an industry perspective, driven by the May Day holiday effect, residents' travel and dining consumption have become more active. The business activity index of industries such as railway transportation, air transportation, accommodation, and catering has significantly rebounded, all located in the expansion zone, and market activity has increased; The business activity index of such industries as postal services, telecommunications, radio and television and satellite transmission services, Internet software and information technology services continued to be in a high boom range of more than 55%, maintaining a good growth trend.

Most non manufacturing enterprises remain optimistic about market development. In May, the expected index of non manufacturing business activities was 55.9%, slightly down 0.1 percentage points from the previous month, but still in a relatively prosperous range. Among them, the expected index of service industry business activities was 56.5%, an increase of 0.1 percentage points from the previous month.

In addition, in May, the comprehensive PMI output index was 50.4%, an increase of 0.2 percentage points from the previous month, and the overall production and operation activities of Chinese enterprises continued to expand.

Information source: Xinhua News Agency/Xinhua News Agency reporter Pan Jie