China’s NBS Manufacturing PMI rose 0.5 pts to 49.5 in May, marking a modest improvement but still signaling contraction.

• The Production Index rose 0.9 pts to 50.7, returning to expansion, while New Orders increased 0.6 pts to 49.8, nearing the neutral threshold.
• Export Orders recovered 2.8 pts to 47.5 after plunging in April, and Imports rebounded to 47.1.
• Input prices and factory prices remained weak, at 46.9 and 44.7, respectively, continuing to pressure margins.
• Employment edged up to 48.1 (vs 47.9 prior), still in contraction, and Inventory of Raw Materials remained subdued at 47.4.
• All enterprise sizes below 50 except large firms (50.7), which led the stabilization; medium-sized firms dropped to 47.5.

China’s Non-Manufacturing PMI dipped -0.1 pts to 50.3 in May, suggesting continued but slower expansion in services and construction.

• Construction activity slowed (-0.9 pts to 51.0), while services held steady (0.1 pts to 50.2); sectors like transport, telecoms, and software remained strong.
• New Orders rose 1.2 pts to 46.1, signaling a modest demand rebound, especially in construction (3.7 pts to 43.3).
• Input Prices (48.2) and Sales Prices (47.3) remained in contraction but improved MoM.
• Employment was unchanged at 45.5, with a divergence between construction (1.7 pts to 39.5) and services (-0.2 pts to 46.6).
• Business expectations remained optimistic at 55.9, despite a slight dip.

China’s Composite PMI Output Index rose 0.2 pts to 50.4 in May, indicating modest expansion across the economy.