- Flash China Manufacturing PMI™ at 49.1 in May (48.9 in April). Two-month high.
- Flash China Manufacturing Output Index at 48.4 in May (50.0 in April). 13-month low.
The Flash China Manufacturing PMI pointed to a further deterioration in operating conditions in May, with production declining for the first time in 2015 so far. Moreover, softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the near term, as companies tempered production plans in line with weaker demand conditions.
On a positive note, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required.
