China’s factory activity expanded at the fastest pace in five months despite increasing raw material prices, showed a Caixin-sponsored survey on Tuesday.
Providing an independent snapshot of China’s manufacturing industry, the Caixin China General Manufacturing Purchasing Manager’s Index (PMI) rose from 51.9 in April to 52 in May.
Amidst raw material shortages and higher prices, factory outputs rose in May at a slower rate while new export orders increased at the quickest pace in three months. The surge in demand in China and overseas supports the increased number of total new orders, however, manufacturing firms expressed concerns over pandemic-related uncertainty and rising commodity prices.