(Yicai Global) June 5 -- China’s manufacturing and services sectors expanded at a stable and moderate rate in May, with the Caixin China composite purchasing managers’ index unchanged from the month before at 52.3.
Growth in both sectors was slower than that seen at the start of the year, but stayed above the 50-point mark that divides expansion from contraction, market research firm IHS Markit said in a statement today.
The services sector grew faster than manufacturing thanks to firmer client demand and new product offerings. The Caixin China services PMI remained unchanged at 52.9 in May, while the manufacturing gauge also held steady at 51.1.
“The employment index continued to rise, while the new business index slipped slightly, indicating a positive change on the supply side and marginally weaker demand across the service sector,” Zhong Zhengsheng, director of macroeconomic research at Caixin think tank CEBM Group, said in the statement.
“The changes led to a softer rise in prices charged, easing the upward pressure on service prices,” he said. “However, input costs rose at a faster pace after slowing down for three consecutive months, suggesting that the upward pressure on service costs has not completely eased.”
Input and producer price indexes rose, showing that raw material costs are still supported. The index of business expectations returned to a high level, indicating corporate confidence remains strong. The impact of a recent credit crunch at small businesses should be closely monitored, Zhong added.
Editor: William Clegg