Manufacturing Industry Still Maintains Moderate Expansion, Speeding Up Reform And Steady Employment.

In June 3rd, Caixin China's Manufacturing Purchasing Managers Index (PMI) released in May was 50.2, unchanged from April, and expanding for three consecutive months.

This means that China's manufacturing industry still maintains a moderate expansion trend.

Judging from the sub index, the new export orders index rose again to the expansion interval, the new order index rose slightly in the expansion range, the employment index rose slightly, the raw material inventory index and the raw material purchase price index increased in the expansion area.

Data show that the total volume of new orders is further increased, so that PMI data will continue to expand.

With the growth of new export orders, the growth of new business in May is slightly faster than that in April.

According to the respondents, new product launches and strong external demand have led to the growth of new orders in May.

After a slight increase last month, manufacturing output stabilized in May.

The growth of new business volume has increased, prompting the resumption of growth of manufacturers' procurement activities, which is the first expansion of procurement activities in 5 months.

Procurement inventory remained unchanged for second consecutive months.

However, in order to deliver new orders, manufacturers increased the use of existing inventory, resulting in further decline in finished goods inventory.

In addition, the new orders increased, and the backlog workload increased in May. However, for employment, manufacturers remained cautious and employment scale declined slightly for second consecutive months.

According to the May figures, the average input cost of China's manufacturing industry increased slightly, which was significantly slower than the same period last year.

The factory price of manufacturing products is flat with last month, and many manufacturers say that the market competition pressure is great.

"Manufacturing industry remains moderately expanding."

Zhong Zhengsheng, chief executive of the new think-tank, said that the new order index rose slightly, and the new export orders rebounded to a high level in the year.

Output index has dropped further, but it is still expanding.

Purchasing inventory index rose slightly above the ups and downs, and finished product inventory index also picked up slightly but still contracted.

It reflects that the inventory level of enterprises is still at a low level, and the willingness of enterprises to replenishment will be uplifted.

The input price index is slightly upward, in the expansion interval; the ex factory price index is slightly down, falling on the ups and downs line, and the industrial prices are stable as a whole.

"Overall, China's economy grew steadily in May and remained resilient.

In May, the demand for domestic and foreign manufacturing industry was good, and the price level was stable. "

Zhong Zhengsheng said that in the future, we should stabilize and enhance the confidence of enterprises, residents and capital markets through effective reform and timely regulation.

Zhang Yu, chief macroeconomic analyst of Huachang securities, believes that small business PMI is especially worthy of continuous attention based on the small scale enterprises' perception of the external economic and policy environment.

In May, the PMI employee index decreased, indicating that employment pressure remained.

The State Council has set up a leading group on employment recently, explaining the full attention to the steady employment next step.