Official data: China’s PMI slumped in May as economic recovery loses momentum
Investors have been dumping risky assets including stocks and futures while urging the government to introduce more stimulus to boost growth.
China released its official manufacturing purchasing managers’ index (PMI) for May 2023 with disparaging results as the country struggled to retain the strong post-pandemic recovery pace observed earlier this year due to sluggish external demand and persistently lethargic property market.
According to the National Bureau of Statistics (NBS), the official manufacturing PMI fell 0.4 points month-on-month to 48.8 in May, marking the lowest reading since December 2022.
A subindex for new orders fell to 48.3 from 48.8 in the previous month. On the other hand, the subindex for new export orders dropped 0.4 points from April to 47.2 in May, signalling the continued deteriorating overseas demand.
Meanwhile, the weaker service sector caused heavy concerns among industry participants since it is the main driver behind the economic recovery this year and also a key employment provider. Data showed the service sector growth index in May at 53.8 points, down from 55.1 in April.
Investors have been dumping risky assets including stocks and futures while urging the government to introduce more stimulus to boost growth.