CQQQ - China's May PMI Disappointed As Manufacturing Fell Back Into Contraction
2024-05-31 06:52:00 ET
Summary
- Manufacturing sector PMI fell back into contraction amid weak orders and slowing production.
- Given a fairly strong positive correlation between the data, the disappointing PMI release sends a warning signal for the upcoming industrial production data.
- If the hard data for industrial activity indeed confirms a slowdown, there could be increased urgency to expedite the rollout of trade-in policies and other policies to support consumption and investment to keep the economy on track to reach its 5% growth target this year.
By Lynn Song
Drop in production and new orders pulled the manufacturing PMI into contraction
China's manufacturing PMI fell to a three-month low of 49.5
China's May manufacturing PMI fell to 49.5, down from 50.4 in April. May's manufacturing PMI marked a 3-month low and was disappointing after the recent strength of industrial activity data. The PMI came in notably weaker than both the market and our forecasts, which expected an uptick....
China's May PMI Disappointed As Manufacturing Fell Back Into Contraction