China's Caixin Manufacturing PMI Rises to 4-Month High in May

Marco Green
June 2, 2020

Even as the Indian economy was struggling through a prolonged phase of lockdown before the outburst of coronavirus, the manufacturing PMI remained above 50 since 2018, which showed that businesses and manufacturers were optimistic about the recovery.

The UK's dire manufacturing showing last month was still slightly better than the eurozone, as IHS Markit's activity index registered a score of just 39.4.

The new coronavirus pandemic - which has killed more than 370,000 people around the world - has wreaked havoc with supply chains and quashed demand as government-imposed lockdowns forced businesses to close and citizens to stay home.

Alongside the devastating impact of the pandemic, a U.S.

With hopes the worst has passed, however, purchasing managers were less pessimistic last month. -China spat over Hong Kong's status and Beijing's handling of the pandemic could sour business sentiment and add to already huge strains on the global economy.

Despite the positive signals, economists and industry groups warned that the recovery could take longer than first expected and that the risk of lasting damage was rising. The survey's measure of order backlogs at factories rose to 38.2 last month after plummeting to a reading of 37.8 in April.

In a sign of further demand weakness, new orders placed with goods producers continued to fall after April's record contraction.

China's official manufacturing PMI, which is focused more on large, state-owned firms, edged down to 50.6 in May from 50.8 in April, dropping for a second straight month, data released by the National Bureau of Statistics showed Sunday.

India's manufacturing activity contracted in May due to weak demand and logistic challenges, said the monthly IHS Markit India Manufacturing Purchasing Managers's Index (PMI) survey on Monday.

Capital Economics said the region's manufacturing sector is in deep recession.

"Pressure on manufacturers should ease further as lockdown restrictions are loosened, customers return to work and global activity restarts". "And things are likely to continue improving very gradually over the coming months as external demand recovers", analysts at the consultancy wrote. Domestic demand also remains depressed amid increased job losses and worries about a second wave of infections.

In April, UK auto production fell by nearly 100% to the lowest monthly output since World War II. Vietnam, Malaysia and the Philippines saw PMIs rebound from April, though the indices all remained below the 50-mark threshold.

An index measuring output, which feeds into a composite PMI due on Wednesday, remained weak but did nearly double to 35.6 from April's record low of 18.1.

Other reports by Click Lancashire

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