China’s Economic Output Expands Steadily with Diversified PMI Performance in May
Xinhua News Agency releases official economic data jointly published by the Service Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing on May 31, outlining China’s macroeconomic operational trends for May. The country’s manufacturing Purchasing Managers’ Index stands at 50.0 percent in May, a month-on-month drop of 0.3 percentage points. The non-manufacturing business activity index and the composite PMI output index record 50.1 percent and 50.5 percent respectively, rising by 0.7 percentage points and 0.4 percentage points from the previous month, signalling sustained overall expansion of China’s economic output.
China’s manufacturing sector maintains stable overall operation with accelerated expansion of new growth drivers. Manufacturing production activities remain in expansion territory, with the production index registering 51.2 percent in May, staying above the critical threshold for continuous industrial output growth. The new orders index edges down to 49.9 percent, reflecting mild moderation in overall market demand. External demand faces relatively prominent downward pressure, as the new export orders index falls 1.7 percentage points month on month.
Domestic consumption demand delivers steady support to offset weaker overseas market performance. Driven by consumption booms during the May Day holiday, new orders in the consumer goods manufacturing sector remain close to the critical level, underpinning stable overall domestic demand. The manufacturing production index has stayed above 51 percent for three consecutive months, maintaining robust production expansion momentum across industrial enterprises. A slight supply-demand imbalance emerges amid moderating market demand, placing mild inventory pressure on finished products and slowing commodity outbound circulation.
Industrial price growth sees a mild slowdown while remaining at relatively high levels. The main raw material purchase price index and factory gate price index reach 60.5 percent and 51.9 percent in May, down 3.2 percentage points month on month for both indicators. Easing price growth stems from falling quotations of bulk commodities such as crude oil and moderating raw material procurement activities across the manufacturing industry. Both price indicators remain in expansion territory, indicating raw material costs continue an upward trend at a slower pace.
Emerging industrial momentum continues to gather strength and optimise the industrial structure. The PMI of high-tech manufacturing and equipment manufacturing rises to 52.9 percent and 52.1 percent respectively in May, up 0.7 percentage points and 0.3 percentage points from the previous month. Both sectors operate steadily above the expansion threshold, with high-tech manufacturing PMI staying in positive expansion for 16 consecutive months. Advanced manufacturing sectors keep strengthening their leading role in driving industrial upgrading and high-quality economic development. The overall manufacturing sector retains stable fundamentals with positive shifts in production, pricing and structural layout, facilitating the economy’s continuous upgrading and optimisation.
China’s non-manufacturing sector rebounds notably, with business activities returning to expansion in May. The non-manufacturing business activity index climbs month on month, driven by dual growth in infrastructure investment and resident consumption. The construction industry business activity index rises 0.8 percentage points to 48.8 percent, with overall industrial prosperity improving and infrastructure construction activities maintaining steady expansion. Sustained demand from urban renewal and key infrastructure network projects fuels growth momentum for fixed-asset investment.
Business expectations for civil engineering construction surge more than 4 percentage points month on month to over 55 percent, hitting the highest level so far this year. Continuous policy implementation and accelerated landing of major construction projects will further boost industrial demand and optimise operational conditions for construction enterprises.
Residential consumption-driven service industries register vigorous growth thanks to concentrated May Day holiday consumption release. Business activity indices for railway transportation, scenic spot services and catering industries all climb above expansion thresholds, with the catering sector recording a month-on-month increase of over 5 percentage points. Digital service industries maintain rapid development, as the business activity index for telecommunication, radio, television and satellite transmission services remains above 55 percent for three consecutive months. The business activity index for internet and software information services rises month on month for three straight months and stays above 54 percent for two consecutive months.
New momentum represented by information services retains strong development vitality, with industry business activity expectations consistently standing above 58 percent. Continuous technological innovation and integrated development in digital service sectors will further foster new productive forces and inject lasting impetus into industrial transformation.
Non-manufacturing prosperity levels keep improving with stable consumption and investment performance. Ongoing policy implementation and intensified innovation-driven development will further consolidate endogenous growth momentum for China’s macro economy, sustaining steady and high-quality economic development across all sectors.
