Official Data: China’s PMI remained in contraction territory for the third straight month

The strict COVID-19 lockdown in Shanghai and restrictions elsewhere continue to impact the manufacturing activities in China in the month of May 2022. Although there were some relaxations, but logistics constraints weigh on the recovery process.

The official manufacturing purchasing managers’ index (PMI) stood at 49.6 in May, according to the latest data from the National Bureau of Statistics, up from 47.4 in April. This is the third month in a row the figure remains below the 50-separation point.

Meanwhile, the non-manufacturing PMI, which measures the business sentiment in the service and construction sector also rose to 47.8 points in May, from 41.9 the month before. 

Shanghai is set to reopen after more than two months of lockdown on 1 June, and with a hefty economic stimulus package announced, business activities are expected to rebound sharply in June.