The Weekly Brief
Thought of the week
Chinese business surveys moderated in May, with the official Purchasing Managers' Index for manufacturing unexpectedly falling 0.4 points to 4B.8 on the back of lower demand. The non-manufacturing measure (which includes both the services and construction sectors) fell 1 point to 54.4, remaining in expansionary territory. Within the non-manufacturing index, industries linked to reopening such as airlines and transport reported faster growth, but the headline figure was dragged down by the property sector. These surveys suggest the Chinese economy is still seeing services demand rebound from its Covid lows, but that the pace of GDP growth may moderate going forward.
China's recovery is slowing, but the service sector remains solid
NBS Purchasing Managers' Indices, index level