Chinese Manufacturing PMI Up in May but Lockdowns Weigh Heavily

The Chinese Purchasing Managers’ Index for the manufacturing sector was 48.1 in May (April: 46). An index below 50 indicates a contraction of the manufacturing sector in China.

Caixin’s data is consistent with a report from the National Bureau of Statistics (NBS) that the manufacturing PMI index was 49.6 in May, up from 47.4 in April.

The data reflect that China’s economic activities, including manufacturing, services and construction, have been severely affected by the lockdown measures to contain the outbreak in key cities. This includes Shanghai, China’s financial center.

China may miss its 5.5% growth target this year, and most economists expect Chinese GDP to grow by only 4.5% in 2022, below the government’s target.

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