BEIJING, 31st May, 2024 (WAM) -- The Purchasing Managers' Index (PMI) for China's manufacturing sector came in at 49.5 in May, down from 50.4 in April, according to official data released on Friday, but production continued to expand with new growth drivers maintaining momentum to propel a steady economic recovery.
According to China Central Television (CCTV), the manufacturing sector experienced a slight decline in May, influenced by the high index base established due to rapid growth in manufacturing in previous months, along with insufficient effective demand.
"Although the PMI experienced some small fluctuations due to seasonal elements, the overall economic performance remains stable. The PMI data indicates that the overall economic recovery trend has not changed," said Zhang Liqun, a researcher at the Development Research Centre of the State Council.
The sub-indexes show that manufacturing production expanded. Policies like large-scale equipment updates and trade-in services for consumer goods have increased companies' willingness to produce, with the production index standing at 50.8 percent in May, still above the threshold.
"By industry, the production index for general-purpose machinery, railway, shipbuilding, aerospace, computers, communication equipment, and other electronic equipment has remained in the expansion zone for three consecutive months with a relatively rapid release of industrial capacity in these related industries," said Huo Lihui, director of the Business Climate Division at the Service Survey Centre of the National Bureau of Statistics.
Additionally, new growth drivers continue their growth momentum. The PMI for both equipment manufacturing and high-tech manufacturing reached 50.7 percent in May, at an expansionary zone.