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China’s manufacturing PMI fell to 50.6 in May from 50.8 in April, indicating
that the manufacturing sector recovered at a slower pace in May.
5 of the 13 sub-indices were lower than their respective levels in the
previous month. For example, the output index slid 0.5 pts in May,
indicating a moderation in output growth.

Moreover, the purchase of
inputs index went down by 1.2 pts in the month. In contrast, the new
orders index rose by 0.7 pts, while the new export orders index
rebounded by 1.8 pts in May. Also noteworthy is that the input prices
index rose above the critical 50-mark, returning to the expansionary zone
in May.

By size of enterprises, the PMI of ‘large enterprises’ came in at 51.6 in
May, up from 51.1 in April. The PMI of ‘medium enterprises’ dropped to
48.8 in May from 50.2 in April. The PMI of ‘small enterprises’ edged down
to 50.8 in May from 51.0 in April.

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The output index came in at 53.2 in May, down from 53.7 in April. The
output indices of ‘large enterprises’, ‘medium enterprises’ and ‘small
enterprises’ all stayed above the critical 50-mark, registering 54.9, 51.0 and
52.2 respectively in May.



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