Workers produce medical protective goggles at a factory of a company in Helong, Yanbian Korean Autonomous Prefecture, northeast China's Jilin Province, May 6, 2020. Epidemic prevention materials production companies in Helong have been producing medical supplies at full capacity to meet domestic and foreign demands during the fight against the novel coronavirus epidemic. (Xinhua/Xu Chang)

The Caixin/Markit manufacturing Purchasing Manager's Index (PMI), a gauge of activity in China's manufacturing sector, returned to the expansion territory at 50.7 in May, reflecting an accelerated recovery in economic activity.

The index was up 1.3 percentage points from April and the highest since February.

The Caixin index trend is contradictory to the official manufacturing PMI released on Sunday, which showed a month-on-month drop of 0.2 percentage points to 50.6.

According to Caixin, the recovery of manufacturing has been faster than demand. The new export order index has been in the contraction territory for five consecutive months as many countries have imposed strict lockdowns and suspended businesses.

The price of raw materials has remained in the contraction zone for four straight months, with some factories saying price drops for materials like metal and petroleum have driven down costs.

Many of the companies polled said they had cut workers due to insufficient market demand. The survey showed domestic companies reported their first product backlog drops since February 2016.

However, some Chinese economists remain upbeat about China's economic growth prospects in the wake of the COVID-19 epidemic, saying the economic rebound will continue and could be more evident from June. Tian Yun, vice director of the Beijing Economic Operation Association, told the Global Times that China's economy may return to positive growth in June, though second-quarter GDP growth could be flat year-on-year.

Li Xunlei, chief economist at the Shanghai-based Qilu Asset Management, said in an article posted on his public WeChat Account on Monday that the domestic GDP growth rate may reach about 9 percent in the first quarter of 2021, following the positive growth since the second quarter of 2020.