Orange-red robotic arms install doors in NIO Second Advanced Manufacturing Base in Hefei, East China's Anhui Province on April 15, 2024. Photo: Chen Tao/GT

China's private purchasing managers index (PMI) for the manufacturing sector released by Caixin hit 51.7 in May 2024, the highest level since 2022 July, which is 0.3 percentage point higher than April, indicated gains in vitality across nation's massive small and middle-size manufacturing firms. 

In May, supply and demand within the manufacturing sector continued to expand, with the month's production index reaching a new high since July 2022, with strong growth in consumer goods production. 

The new orders index slightly edged down, though still within expansion range, while the expansion of external demand slowed down significantly. New export orders index last month slowed down too, but remaining in positive territory. 

The employment index saw a mild increase, while enrolments for consumer production manufacturing enterprises recorded a modest growth. 

Wang Zhe, a senior economist at Caixin, said that the manufacturing sector had maintained a positive growing trend in May, with expansions in market supply, demand, and exports. Enterprises have maintained optimistic, though price levels remained low, he noted. 

However, the country still faces challenges in overall employment situation and lackluster market demand, primarily due to weak expectations, Wang said, adding that long-term policy goals including stabilizing the economy, promoting domestic demand, and increasing employment should be implemented to accelerate growth. 

China's official manufacturing PMI for May released by the National Bureau of Statistics stood at 49.5, down 0.9 points from the previous month. Lifted by a string of multiple festivals and holidays falling in the month, non-manufacturing PMI maintained expansion momentum and stood at 51.1, the bureau reported. 

Global Times