China manufacturing PMI remains stable in May on energy costs

China's industrial activity remained stable in May after expanding for two consecutive months, reflecting pressure from rising energy costs since the Middle East conflict began.

The PMI (Purchasing Managers Index) for the industrial sector fell to 50.0 this month, from 50.3 in April, according to data released this Sunday (31) by the NBS (National Bureau of Statistics). An index above 50 represents expansion of activity.

The composite PMI rose from 50.1 in April to 50.5 in May, while the services PMI advanced from 49.4 to 50.1 in the same comparison - entering expansion territory.

Sunday's data offered a new read on China's economic health, coming on the heels of a widespread slowdown last month that had raised hopes of more stimulus.

China's consumer spending growth slowed to its weakest pace since 2022 in April, while industrial production, investment and the real estate sector continued to deteriorate, falling short of economists' expectations.

While the energy shock from the Iran war is putting pressure on the world's second-largest economy and exacerbating its uneven recovery, many economists consider Beijing unlikely to intervene in the near term, in part due to better-than-expected growth in the first quarter and resilient exports.

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Source: CNN