Mixed China PMI Data Suggests Economy Muddling Through

China's May economic data showed mixed signals, with official manufacturing PMI hitting a neutral 50.0 and non-manufacturing slightly expanding at 50.1.

Key Takeaways

• 1.China's manufacturing PMI fell to a neutral 50.0 level in May, marking a three-month low.
• 2.The non-manufacturing sector unexpectedly returned to expansion with a PMI of 50.1, beating market expectations.
• 3.The RatingDog PMI outperformed official data at 51.8, indicating that export-focused manufacturing is stronger than domestic demand.

Table of Contents

• China's mixed PMI data suggests economy is muddling through
• Manufacturing PMIs moderate in May
• PMI correlation with industrial production data has weakened over the past few years
• Non-manufacturing PMI saw a surprise return to expansion in May
• Non-manufacturing PMI returned to expansion but key sub-indices still look soft
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