China Caixin Manufacturing PMI for May: 50.9 (expected 49.5)

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China Caixin Manufacturing PMI for May: 50.9 (expected 49.5)

Caixin / S&P Global China Manufacturing PMI for May 2023 comes in at a much improved 50.9

• expected 49.5, prior 49.5 also

Both manufacturing supply and demand improved. The job market did not.

• Manufacturing output grew significantly, with the related subindex logging its highest since June 2022.
• The subindex for total new orders recorded its second-highest reading since May 2021 as surveyed businesses reported more clients and demand, even though demand remained a bit weaker than supply. External demand remained stable, with the gauge for new export orders rising marginally within expansionary territory. Exports of intermediate goods significantly outperformed shipments of consumer and investment products.
• In a stark contrast to the improvements in supply and demand, the job market contracted at a faster pace in May, with the employment subindex plumbing the lowest level since February 2020. Manufacturers were reluctant to hire workers as they sought to trim staffing levels and increase efficiency.
• As deflationary pressure has grown, the gauges for input and output prices remained well below 50 for the second straight month, logging their second-lowest readings since early 2016. Input prices were dragged down by falling food, fuel and industrial metals costs, while prices charged to customers were constrained by heated market competition.

USD/CNH update:

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Yesterday the official PMIs for May were disappointing:

• ForexLive Asia-Pac FX news wrap: China's Manufacturing PMI slides further into contraction

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                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: China Caixin Manufacturing PMI for May: 50.9 (expected 49.5)

forexlive.com