Connect with us


Economic Watch: China PMI data shows fresh signs of recovery amid COVID-19 control



China‘s factory and service sector activities expanded in May amid government policies to coordinate growth and control of the COVID-19 epidemic, official data showed Sunday.

The purchasing managers’ index (PMI) for China‘s manufacturing sector and that for the non-manufacturing sector both stood above the boom-bust line of 50 in May, indicating steady recovery in major industries, data from the National Bureau of Statistics (NBS) showed.

While the manufacturing PMI eased to 50.6 in May from 50.8 in April, it still indicated an upward trend in economic growth as counter-cyclical adjustment policies gradually took effect, said Wen Bin, chief analyst at China Minsheng Bank.

China has been walking a fine line in balancing epidemic control and economic recovery, with targeted measures introduced to help firms safely restart their businesses.

Of the surveyed manufacturing firms, 81.2 percent saw over 80 percent of their business operation resume in May, NBS data showed.

Domestic demand bounced back, with the indices measuring new orders in 12 of the 21 surveyed manufacturing industries picking up, NBS senior statistician Zhao Qinghe noted.

The sub-index gauging firms’ expectations for business activities ticked up 3.9 percentage points to 57.9, indicating improved confidence among manufacturing companies.

Sunday’s data also showed that the PMI for China‘s non-manufacturing sector came in at 53.6 in May, up from 53.2 in April.

The sub-index for business activities in the construction sector saw accelerated pace of growth in May, expanding 1.1 points from the previous month to 60.8, while that for the service sector steadily recovered, edging up 0.2 points from April.

As China further implements proactive fiscal policy after the annual sessions of the national legislature and political advisory body, the construction industry is expected to see sound growth momentum, Wen said.

China will blaze a new path of shock-resilience and positive growth cycles which will center on stabilizing employment, energizing the market, stimulating demand and achieving stable growth, according to a government work report delivered by Premier Li Keqiang at the annual national legislative session.

To that end, the country will pursue a more proactive and effective fiscal policy, aiming to reduce corporate burden by over 2.5 trillion yuan (about 350 billion U.S. dollars) this year.

Toshiyasu Iiyama, head of China Committee of Nomura Holdings, said that the tax and fee cuts are expected to benefit domestic and foreign companies alike.

The country also promised to ensure fair competition and make sustained efforts to create a market-oriented, law-based, and internationalized business environment, a move that will further improve the quality of the market economy and inject vitality into the market, Iiyama said.

The country will pursue a prudent monetary policy in a more flexible and appropriate way, using a variety of tools including reserve requirement ratio cuts, interest rate reductions and relending to enable M2 money supply and aggregate financing to grow at notably higher rates than last year, said the report.

As total social financing continues to grow, China’s manufacturing PMI will likely stay in expansionary territory, investment bank CICC said in a research note.


Nnn: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]

6 men docked over alleged theft of N51.3m goods Indonesian policemen jailed for acid attack on graft investigator Coronavirus: GTB reiterates commitment to safeguarding lives, livelihoods Committee lauds Appeal Court ruling on Rivers APC FG inaugurates presidential c’ttee for maintenance of Zik Mausoleum, conference centre  Tallen assures FG’s commitment to end violence against women, children Agip promises to complete infectious diseases hospital in Bayelsa Reps C’ttee accuses Labour Ministry of aiding human trafficking Minister urges youths to key into skills development acquisition Stanbic Bank donates Coronavirus Test Kits to NIMR Adamawa High Court, Customary Court get new Chief Registrars Niger Gov. attributes reduction of 2020 budget to Coronavirus pandemic NGO, Air Liquide donate Oxygen to Gbagada General Hospital 2 men bag 6 months each for cheating, negligence in FCT Kogi Assembly wants govt. to immortalise first female combatant helicopter pilot FCT task force raids drug dealers’ depot Jaiz Bank to pay maiden dividends of N884m to shareholders Interior Minister wants security operatives to undergo drug tests Retirement age: Commission quaries NASS clerk Return all govt. properties, Oyo House tells sacked council chiefs Edo governorship : Northern professionals platform pledges support for Ize-Iyamu Gov. Sule condoles Maku’s family over killing of nephew, niece Laos reports 113 new cases of dengue fever Fever APC chieftain calls for dissolution of state working committee in C/River  Ethiopia: UNHCR faces funding shortfall to meet Coronavirus related needs of refugees   President Buhari approves new Merit Award Board Britain to publish report on Russian influence after PM Johnson thwarted Police nab 2 over alleged culpable homicide in Niger  ANAMMCO donates hands free washing device to Enugu Govt Police arrest 1,583 suspected thugs, drug peddlers in Kano Immigration partners NDLEA on drug test, rehabilitation for personnel FG moves to fund indigenous inventions FCTA to harness unexploited opportunities in livestock sub-sector Community Policing Committees inaugurated in Edo NASC queries National Assembly Clerk for insubordination Flood  ravages Lapan Gwari community, destroys over N1bn property Kebbi State Govt. condoles with Zuru Emirate over ex-lawmaker’s death AFAN hails CBN plan to ban forex on maize importation Council commends Plateau State on Coronavirus drugs Anambra reassures farmers of support to access credit facilities Use skills acquired to fight poverty, Coordinator tell outgoing corps members UK accuses Russia of trying to hack, steal Coronavirus vaccine data Enugu Govt. distributes palliatives to physical challenged in 17 LGAs Gabon now has first female Prime Minister Man faces trial over alleged N1.4m fraud Alleged N21.2m car fraud lands 2 men in court Coronavirus: FAO warns over rise in hunger in Africa Coronavirus protocols: New FRSC commander reads riot act to erring drivers in Lagos, Ogun Agriculturist urges public to embrace farming to combat food scarcity Dabiri-Erewa congratulates Prof. Egbu on his appointment as VC of UK university