Beijing: Chinese industrial activity expanded in May, and European and US surveys are expected to show the manufacturing recession easing, encouraging investors to bet on a recovery that is pushing the balance of economic power away from the West.
Surveys of global manufacturing activity showed why China is centre stage in any discussion about recovery from the economic slump.
China’s official purchasing managers index (PMI) fell slightly in May to 53.1 from 53.5 in April, its third straight month above the 50 mark which separates expansion from contraction. The private sector PMI stayed above 50 for a second month. Both surveys showed new export orders improving, with the official reading of this sub-index climbing above 50 for the first time since June.
“We expect manufacturing activity will continue to expand in the coming months, supported by the roll-out of the government’s stimulus. Some bright spots have emerged in China’s heavy industries,” Jing Ulrich, managing director and chairman of China equities at JPMorgan in Hong Kong, said in a note.