Caixin manufacturing PMI stands at 50.2 for May, displaying China’s economic resilience

Source:Global Times Published: 2019/6/3 13:43:39

The Caixin Manufacturing PMI, a private survey of China's manufacturing activity, remained in expansion territory in May for three consecutive months, indicating a moderate expansion of the Chinese manufacturing sector. 

Thanks to a large domestic market and strong policy for domestic small-and medium-sized enterprises, including tax and fee reductions, the Chinese economy has shown great resilience to counter pressure brought by uncertainties in global markets amid the ongoing China-US trade war, analysts said.

China's Caixin Manufacturing PMI maintained at 50.2 in May, which was slightly higher than expectations. May's figure remained flat from that of April.

It showed that China's manufacturing output leveled off in May, which was slightly above the critical point separating expansion from contraction, according to a report released by Caixin. With new orders continuing to accelerate and outputs remaining stable in the Chinese manufacturing sector, industrial employment continued to contract in May and declined slightly as manufacturers remained cautious because of their concerns over the market, the report said.

"The Caixin survey focuses on small and medium-sized enterprises, and the above-expected reading showed that the effects of China's methods to boost these sectors have kicked in," Xu Hongcai, deputy director of Economic Policy Commission, told the Global Times on Monday. 

"Given the general background of a sluggish international economy and the China-US trade war, employment in the manufacturing sector has been under pressure for a long time," Xu said, noting that the prospects of the domestic job market will maintain sound as the economy continues to gain stable growth.

Both domestic and external demand in China's manufacturing sector was favorable, and price levels were stable in May, the report said, citing Zhong Zhengsheng, an economist with the Caixin think tank.

With weakened business confidence, China should take measures to further stabilize confidence of enterprises and capital markets, according to Zhong.

Posted in: ECONOMY

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