Later this morning, China’s NBS will release its manufacturing PMI report for May, a closely-watched indicator on the nation’s industrial sector.
Here’s the state of play.
- A figure under 50 indicates industry activity is contracting while those over 50 suggests it’s expanding. A score of 50 represents no change in overall activity.
- In April, the gauge held steady at 50.1, bucking expectations for a decline to 50.0
- Twice this year activity has contracted while twice it’s expanded. The last time it came in higher than 50.1 was in November 2014. This indicates that activity has been largely static in the past five months.
- In April a surprise jump in the output subindex to 52.6 from 52.1 prevented the headline PMI gauge from slipping further. However, with new export orders and order backlogs continuing to contract, along with subdued overall new order growth, this boost appears unlikely to be maintained based on these metrics.
- According to the report, employment across China’s manufacturing sector has failed to expand since May 2012.
- In May, activity tends to be weaker than what is reported in April. Over the past nine years the index has fallen in May.
- Despite this, the median economist forecast is for the PMI reading to increase to 50.2 (shown in blue).
The report will be released at 11am AEST this morning. Business Insider will have full coverage once it hits our screens.