SMM News: data released on Monday June 3 showed that China's Caixin manufacturing PMI recorded 50.2 in May, higher than the expected 50.00, unchanged from the previous value of 50.20.
China's manufacturing output leveled off in May after a small increase last month, just above the dividing line between boom and bust. New export orders have rebounded significantly to their highest levels for the year, and as a result, the total volume of new orders has accelerated, growing at a slightly faster rate than in April.
The rise in new orders pushed manufacturers' purchasing activity to an expansion range for the first time in five months, but at a modest pace. Purchasing inventory remained basically flat for two months in a row.
The average input cost of the manufacturing sector rose only slightly in May, a marked slowdown from the same period last year. Factory prices for manufactured goods are the same as last month, and many manufacturers say there is greater competitive pressure in the market. This month's optimism fell sharply to its lowest level since data were available in April 2012, amid widespread fears that external trade problems would escalate and that forecasts for global demand were relatively low.
Historically, the maximum PMI of China's Caixin manufacturing industry was 51.90, with a minimum of 47.20 in December 2016 and an average of 50.21 in September 2015.
In May, the PMI of China's Caixin manufacturing industry was higher than the same month's index of 50 per cent. Historically, the maximum value of PMI of China's Caixin manufacturing industry in May was 51.10, which appeared in 2018, the minimum value was 49.20, and appeared in 2016, with a historical average of 50.03. The monthly data are higher than the historical average.
The seasonal characteristics of PMI in Caixin manufacturing industry in China are as follows: June, July and March are the highest points of the year, and the historical averages are 51.00,50.80,50.80 respectively; The lowest points of the year were in September, January and December, with historical averages of 47.20, 48.30 and 49.70, respectively.
China's Caixin manufacturing PMI has seen a similar trend in the past, with the biggest decline, falling for three months in a row from February to May 2017, down 2.10 percent.