China May manufacturing stabilizes

Two surveys suggest China’s manufacturing sector improved or at least stabilized in May compared with the previous month, providing some respite following signs of a slowdown in the economy’s recovery, reports Bloomberg. China Beige Book, a US-based data provider, said its surveys show manufacturing output picked up “notably” in May from April, as did domestic and foreign orders. Separately, Goldman Sachs cited a pick up in the emerging industries purchasing managers’ index.

“It’s still too early to put a nail in the coffin of the post-Covid Zero recovery,” China Beige Book said in a statement. “Manufacturing activity defied rumors of demise, though soft demand from Western economies remains a major headwind.”

Revenue and profit margins for Chinese manufacturers as well as the service and retail sectors also increased in May from the previous month, it said. China Beige Book’s data was based on a survey of about 1,000 Chinese firms conducted between May 18-25.