China’s manufacturing engine appears to be idling. A Reuters poll of 14 economists projects the country’s official purchasing managers’ index will come in at exactly 50 for May, down from April’s 50.3 reading.
That 50 line is the dividing threshold between expansion and contraction.
What the numbers actually say
April had offered a glimmer of optimism. The official manufacturing PMI hit 50.3, marking the second consecutive month in expansion territory. The private RatingDog/S&P Global PMI painted an even rosier picture at 52.2, its highest level since December 2020.
Goods exports also rebounded strongly in April. But retail sales growth and industrial production both came in below expectations.
