Manufacturing Activity of China Kept Unchanged in May

Based on the data issued on Wednesday, the growth in the manufacturing activity of China was unchanged in the previous month and on the other hand, the services sector revived. This indicates that the Chinese economy slowed down.

The manufacturing purchasing' managers index earned 51.2 for this month which is the same with April result, says by the National Bureau of Statistics. The PMI utilizes a 100-point scale and a 50 mark that divides contraction against the expansion, it generally serves as an early indicator for China.  The struggling factory sector had 10-month consecutive increase as it plays an important part in the Chinese economy while employing a heap of laborers.

A total of 3,000 manufacturers were polled and learned that export orders surge, however, the new orders, in general, remained steady and the global demand should perk up instead of the domestic demand so the index could creep higher. According to further reports, the factory output slid while the job rate accelerated.

Moreover, the official non-manufacturing PMI  bounced back to 54.5 on the back of its six-month decline of 54.0 in the past, suggesting an improved strength for the services industry of the world’s second largest economy.

The economic growth of the Republic weakened in 2016 which is the slowest pace for almost 30 years. Nevertheless, in the latest quarter, it was able to gain 6.9 percent due to government expenditures along with the booming of the debt-fueled real estate. The growth is predicted to be unprogressive for the next months with a 6.5 percent expansion target of the government.