Manufacturing Sector - The manufacturing PMI for May 2025 is reported at 49.5%, a significant increase of 0.5 percentage points from the previous month, aligning with market expectations[2][4] - The production index rose to 50.7%, up 0.9 percentage points from last month, indicating a recovery in production activities[5][14] - New orders index increased to 49.8%, up 0.6 percentage points, reflecting improved demand conditions[5][14] - High-energy industries continue to decline, with the PMI dropping to 47.0%, down 0.7 percentage points, indicating ongoing challenges in these sectors[6] External Trade - The new export orders index rose to 47.5%, a significant increase of 2.8 percentage points, indicating a recovery in export activities following tariff reductions[21] - The import index increased to 47.1%, up 3.7 percentage points, suggesting improved import conditions[21] Service Sector - The service sector PMI increased slightly to 50.2%, up 0.1 percentage points, remaining in the expansion zone, driven by increased tourism and hospitality activities during the May Day holiday[31] Construction Sector - The construction PMI is at 51.0%, down 0.9 percentage points, indicating a slowdown in expansion primarily due to weakened housing demand, although infrastructure projects are accelerating[35] - Special bond issuance has increased significantly, with 443.2 billion yuan issued in May, up from 230.1 billion yuan in April, supporting investment in infrastructure[35]

Group 1: Economic Indicators - The manufacturing PMI for May is 49.5%, an increase of 0.5 percentage points from April, indicating marginal improvement in manufacturing activity[1] - The production index rose to 50.7%, up 0.9 percentage points from April, returning to the expansion zone after briefly falling below 50%[3] - The new orders index recorded 49.8%, an increase of 0.6 percentage points from April, suggesting a slowdown in the decline of manufacturing demand[11] Group 2: Industry Performance - High-tech manufacturing PMI stands at 50.9%, maintaining expansion for four consecutive months[1] - Equipment manufacturing PMI increased to 51.2%, up 1.6 percentage points from the previous month, indicating a recovery in this sector[1] - The coal-fired power generation's cumulative output in May increased by 1.9% year-on-year, while cumulative output for the year decreased by 6.8%[6] Group 3: External Trade and Demand - The new export orders index for May is 47.5%, up 2.8 percentage points from April, reflecting cautious optimism in external demand[15] - The government plans to increase support for consumer goods replacement, raising the special bonds for this initiative from 150 billion yuan to 300 billion yuan[12] - The automotive market saw a retail scale of approximately 1.85 million vehicles in May, a year-on-year increase of 8.5%[13]

Group 1 - In May, the manufacturing Purchasing Managers' Index (PMI) in China rose to 49.5%, indicating an improvement in manufacturing sentiment and economic stability [1] - Both supply and demand in the manufacturing sector showed recovery, with the production index exceeding 50%, signaling accelerated manufacturing activities [3] - The high-tech manufacturing PMI has remained in the expansion zone for four consecutive months, indicating a positive development trend [3] Group 2 - The production and new order indices for industries such as agricultural processing, specialized equipment, and aerospace have exceeded 54%, reflecting rapid growth in supply and demand [4] - The PMI for large enterprises has rebounded above 50%, showing a swift recovery, while small enterprises also experienced significant improvements, demonstrating the resilience of the Chinese economy [6] - The non-manufacturing business activity index for May was 50.3%, indicating continued expansion, with positive performances in investment, consumption, and export-related sectors [6]

Core Viewpoint - The national manufacturing PMI for May recorded at 49.5%, showing a 0.5 percentage point increase from the previous month, indicating a near median level for the same period over the past five years [1][3][4]. Demand and Supply - Both demand and supply sides have improved, with external demand rebounding more strongly than internal demand. The new order index rose to 49.8%, up 0.6 percentage points, while the new export order index increased by 2.8 percentage points to 47.5% [6][12]. - The production index rose by 0.9 percentage points to 50.7%, indicating a recovery in manufacturing production [6][10]. Industry Performance - The equipment manufacturing and high-tech manufacturing sectors showed significant growth in new orders, with indices above 52%. Consumer goods manufacturing also saw a stable increase, with new export orders rising over 6 percentage points into the expansion zone [1][8]. - However, some industries, such as textiles and non-ferrous metal processing, reported new order and production indices below the critical point, indicating insufficient release of production and demand [6][8]. Price Trends - The decline in price indices has narrowed significantly, with raw material prices and factory gate prices both decreasing by only 0.1 percentage points compared to the previous month. This indicates that the ability of companies to pass on costs has not yet recovered [10][12]. Non-Manufacturing Sector - The non-manufacturing business activity index recorded at 50.3%, slightly down by 0.1 percentage points but still above the critical point. The construction sector showed a business activity index of 51%, indicating ongoing expansion [12][13]. - The service sector's business activity index rose to 50.2%, reflecting a slight recovery driven by holiday consumption demand [13].

Economic Overview - In May, the manufacturing Purchasing Managers' Index (PMI) rose by 0.5 percentage points to 49.5%, indicating an improvement in economic conditions [1][2] - The comprehensive PMI output index increased by 0.2 percentage points, reflecting overall economic expansion [1][4] Manufacturing Sector - The new export orders index increased by 2.8 percentage points to 47.5%, suggesting a slowdown in the decline of manufacturing exports [2] - The new orders index rose by 0.6 percentage points to 49.8%, indicating stable market demand [2] - The manufacturing production index returned to the expansion zone at 50.7%, up by 0.9 percentage points [2] - The raw material purchasing index increased by 1.3 percentage points to 47.6%, showing a recovery in procurement activities [2] Key Industries - High-tech manufacturing PMI stood at 50.9%, remaining in the expansion zone for four consecutive months [3] - Equipment manufacturing PMI rose to 51.2%, and consumer goods PMI increased to 50.2%, reflecting improvements of 1.6 and 0.8 percentage points respectively [3] - Large enterprises' PMI increased by 1.5 percentage points to 50.7%, with production and new orders indices at 51.5% and 52.5% respectively [3] Non-Manufacturing Sector - The non-manufacturing business activity index was at 50.3%, slightly down by 0.1 percentage points but still indicating expansion [4] - The service industry business activity index rose by 0.1 percentage points to 50.2%, while the construction industry index decreased by 0.9 percentage points to 51% [4] - The non-manufacturing business activity expectation index was at 55.9%, indicating optimism among businesses [4]

Core Viewpoint - The manufacturing PMI in May shows signs of recovery, indicating the effectiveness of proactive macro policies, while the non-manufacturing sector continues to expand, laying a solid foundation for economic recovery [1][3][9]. Manufacturing Sector - The manufacturing PMI for May is reported at 49.5%, an increase of 0.5 percentage points from the previous month, while the comprehensive PMI output index is at 50.4%, up by 0.2 percentage points [1]. - Key sub-indices such as production, new orders, and procurement have shown improvement, with increases ranging from 0.2 to 3.7 percentage points [3]. - High-tech manufacturing PMI remains in the expansion zone at 50.9%, marking four consecutive months of growth [2][3]. Non-Manufacturing Sector - The non-manufacturing business activity index stands at 50.3%, maintaining above the expansion threshold for five consecutive months [9]. - Significant growth in new orders and export orders in the equipment manufacturing and high-tech sectors, with new export orders rising over 5 and 3 percentage points respectively [4][10]. Price Indices - The purchasing price index for manufacturing is at 46.9%, and the factory price index is at 44.7%, both showing a slight decrease but with a narrowing decline compared to the previous month [6]. - The overall market price decline has slowed, indicating a potential stabilization in demand and production [6]. Employment and Investment - Production investment is showing signs of recovery, contributing to an improving employment situation [7]. - The focus is on activating the domestic market and achieving the goal of expanding domestic demand to support economic circulation [7]. Economic Outlook - The overall economic operation shows a foundation for continued recovery, supported by stable non-manufacturing activities and positive performance in investment, consumption, and exports [8][10].

Group 1: Manufacturing Sector - The manufacturing production index increased by over 4 percentage points, reaching above 54%, maintaining above 50% for 10 consecutive months [1] - The manufacturing PMI for May was reported at 49.5%, up 0.5 percentage points from the previous month, indicating a recovery in manufacturing activity [1] - The new export orders index rose to 47.5%, an increase of 2.8 percentage points, suggesting a slowdown in the decline of manufacturing exports [4] - The production index for manufacturing returned to the expansion zone at 50.7%, up 0.9 percentage points from the previous month [5] - Large enterprises reported a PMI of 50.7%, with a production index increase of 1.7 percentage points, indicating a strong recovery in supply and demand [5] Group 2: Non-Manufacturing Sector - The non-manufacturing business activity index was at 50.3%, a slight decrease of 0.1 percentage points, but still indicating expansion [10] - The civil engineering construction industry saw a significant increase in new export orders, with the business activity index rising to over 60% [10] - The telecommunications services business activity index rose to over 60%, reflecting strong demand in the sector [10][11] - The information services sector continues to show growth potential, supported by policy measures and sustained market demand [11]

Core Viewpoint - The manufacturing PMI in May shows signs of recovery, indicating an overall expansion in China's economy, while the non-manufacturing sector remains stable but slightly declines [1][6][8]. Manufacturing Sector - The manufacturing PMI for May is reported at 49.5%, an increase of 0.5 percentage points from the previous month, indicating an improvement in economic conditions [1][3]. - The production index rose to 50.7%, up 0.9 percentage points, suggesting an acceleration in manufacturing activities [5]. - Large enterprises' PMI increased to 50.7%, returning to the expansion zone, with production and new order indices at 51.5% and 52.5%, respectively [5]. - High-tech manufacturing PMI stands at 50.9%, maintaining expansion for four consecutive months, while energy-intensive industries show lower activity with a PMI of 47.0% [5][6]. Non-Manufacturing Sector - The non-manufacturing business activity index is at 50.3%, a slight decrease of 0.1 percentage points, but still above the critical point, indicating continued expansion [8][11]. - The service sector's business activity index rose to 50.2%, driven by increased consumer activity during the "May Day" holiday [10]. - The construction industry remains in expansion with a business activity index of 51.0%, although it has slightly decreased from the previous month [10][11]. Market Expectations - The production and business activity expectation index for May is at 52.5%, reflecting stable confidence among manufacturing enterprises [6]. - The service sector's business activity expectation index is at 56.5%, indicating ongoing optimism among service providers [10].

Group 1: Manufacturing PMI Insights - In May, the Manufacturing PMI rose to 49.5%, an increase of 0.5 percentage points from the previous month, indicating an improvement in economic conditions [2][3] - The production index reached 50.7%, up by 0.9 percentage points, signaling accelerated manufacturing activity, while the new orders index increased to 49.8%, up by 0.6 percentage points [3] - Large enterprises saw their PMI rise to 50.7%, returning to the expansion zone, with production and new orders indices at 51.5% and 52.5%, respectively [3] Group 2: High-Tech and Export Performance - High-tech manufacturing PMI stood at 50.9%, maintaining expansion for four consecutive months, while equipment manufacturing and consumer goods PMIs were at 51.2% and 50.2%, respectively [4] - New export orders and import indices improved to 47.5% and 47.1%, reflecting a recovery in foreign trade orders, particularly from companies engaged in U.S. trade [4] Group 3: Non-Manufacturing Sector Performance - The Non-Manufacturing Business Activity Index was at 50.3%, slightly down by 0.1 percentage points but still indicating expansion [5] - The service sector's business activity index rose to 50.2%, driven by increased consumer activity in tourism and dining during the May Day holiday [5] - The construction sector maintained expansion with a business activity index of 51.0%, although it showed a slight decline from the previous month [6] Group 4: Composite PMI Overview - The Composite PMI Output Index increased to 50.4%, up by 0.2 percentage points, indicating continued expansion in production and business activities across sectors [7]

Core Insights - The total profit of industrial enterprises above designated size in China reached 21,170.2 billion yuan from January to April, showing a year-on-year growth of 1.4%, indicating a continued recovery trend [1] - The equipment manufacturing and high-tech manufacturing sectors are leading the profit growth, with equipment manufacturing profits increasing by 11.2% and high-tech manufacturing profits rising by 9.0% compared to the same period last year [1] Industry Performance - Among 41 major industrial categories, 23 reported year-on-year profit growth, reflecting the ongoing optimization and upgrading of industrial sectors [1] - In the equipment manufacturing sector, 7 out of 8 industries achieved double-digit profit growth, with 6 industries accelerating their growth rates compared to the first quarter [1] - High-tech manufacturing profits outpaced the overall industrial average by 7.6 percentage points, with significant growth in sectors such as semiconductor equipment manufacturing (105.1%), electronic circuit manufacturing (43.1%), and integrated circuit manufacturing (42.2%) [1] Emerging Trends - The "smart" product sector is experiencing substantial growth, with profits in smart vehicle-mounted devices, smart unmanned aerial vehicles, and wearable smart devices increasing by 177.4%, 167.9%, and 80.9% respectively [2] - The effects of the "two new" policies are becoming evident, with profits in specialized and general equipment sectors growing by 13.2% and 11.7% respectively from January to April [3] - The implementation of the "replace old with new" policy has positively impacted consumer goods, with profits in household electric appliance components, kitchen appliances, and non-electric household appliances increasing by 17.2%, 17.1%, and 15.1% respectively [3]