China’s non-manufacturing PMI rises to 50.1 as services activity rebounds

BEIJING: China’s non-manufacturing purchasing managers’ index (PMI) rose to 50.1 in May, signaling a return to expansion as activity in the services sector improved, according to official data released on Sunday.

The reading was up 0.7 percentage points from April and moved above the 50-point mark that separates expansion from contraction. The data provides an indication of business conditions in sectors outside manufacturing, including services and construction.

Figures released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed that the business activity index for the services sector increased to 50.3 in May, also rising 0.7 percentage points from the previous month.

Services sector shows improvement

Several industries recorded stronger business activity during the month. Railway transportation, telecommunications, broadcasting and satellite transmission services, as well as the insurance sector, remained in the high-growth range and reported expanding business volumes.

In contrast, air transportation and parts of the real estate sector continued to experience relatively weaker market activity.

The business expectation index for the services sector stood at 55.4, indicating that companies remain optimistic about future market conditions.

Construction sector outlook improves

The business activity index for the construction sector increased by 0.8 percentage points to 48.8 in May.

Meanwhile, the sector’s business expectation index rose to 51.5, reflecting improved confidence among construction firms despite activity remaining below the expansion threshold.

Composite PMI edges higher

Official data also showed that China’s manufacturing PMI stood at 50 in May.

The composite PMI output index, which combines manufacturing and non-manufacturing activity, rose from 50.1 in April to 50.5 in May, indicating overall expansion in business activity across the economy.

The latest PMI figures suggest that growth in the services sector helped support broader economic activity during the month.