Manufacturing activity in China also showed signs of contraction in May

While the main economic activity data in China’s manufacturing sectors remained below the growth threshold in May after April, they signaled that the fragility in the economic recovery after the Covid-19 epidemic continued.

The Purchasing Managers’ Index (PMI), announced by China’s National Bureau of Statistics (UIB), declined in both the manufacturing and non-manufacturing sectors in May. The manufacturing PMI decreased 0.4 points to 48.8, while the non-manufacturing PMI decreased 1.9 points to 54.5.

Manufacturing PM has again fallen below the growth threshold in the past two months after three months of post-Covid-19 signs of recovery.

Values ​​above 50 in the PMI indices indicate an increase in economic activities, and values ​​below indicate a decrease.

In manufacturing, the production sub-index decreased from 50.2 to 49.6, the new orders sub-index decreased from 48.8 to 48.3 percent, and the new export orders sub-index decreased from 47.6 to 47. ,2 percent.

The business expectations sub-index, which is considered an indicator of confidence in the market, fell from 54.7 to 54.1.

The non-manufacturing PMI, on the other hand, remained above the growth threshold at 54.5, but fell as it did last month. The index fell to the lowest level of the last 4 months.

‘THE LEVEL OF ECONOMIC DEVELOPMENT HAS DECREASED’

Cao Chinghi, a senior statistician at UIB, said: “There has been a regression in the level of economic development. It is necessary to restore the foundations of recovery and development”. he performed the assessment of it.

After the restrictions due to Covid-19, which hindered economic activities in China, were lifted in December 2022, signs of recovery in the economy were seen with the new year. The PMI manufacturing and non-manufacturing indices have remained above the growth threshold since January, and the country’s economy grew 4.5 percent in the first quarter. (AA)