Chinese PMI for May was broadly in line with consensus expectations. Caixin PMI manufacturing fell only slightly to 49.2 from 49.4 in April. We had been looking for a bigger decline to 48.5 as we look for a further correction to the significant rise seen in March.
The official PMI manufacturing showed a flat reading of 50.1. However, as in the Caixin index, the new orders index fell back in the official PMI as well.
The data continues to underpin a scenario of moderate recovery in the Chinese industry following a hard landing in 2015 in industry and construction.
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