Market news

1 June 2020

China's manufacturing sector expands as Covid-19 restrictions ease

RTTNews reports that China's manufacturing sector returned to expansion zone in May driven by the easing of restrictions related to the coronavirus, or Covid-19, pandemic, survey results from IHS Markit showed Monday.

The headline manufacturing Purchasing Managers' Index rose to 50.7 in May from 49.4 in April.

The latest score above 50.0 indicates a renewed improvement in overall operating conditions but the pace of expansion was only marginal.

It appears that growth has returned to the manufacturing sector, but new export orders and imports were still in contraction, ING economist Iris Pang, said. A recovery in manufacturing and employment in some sectors remains challenging.

According to official PMI survey, released over the weekend, the factory PMI dropped to 50.6 in May from 50.8 in April. Meanwhile, the non-manufacturing PMI advanced to 53.6 from 53.2.

Manufacturers reported an increase in output following a record fall in February, due to the resumption of work. The pace of growth was the fastest since January 2011.

However, total new work declined again as there was a historic fall in external demand in May.

A lack of new orders drove the first fall in backlogs of work since February 2016. At the same time, the resumption of production led to a renewed increase in buying activity.

The employment sub-index rebounded in May but it remained in negative territory.

Supply chains stabilized following severe disruptions in prior months due to restrictions related to the Covid-19 pandemic.

Manufacturers signaled a third successive monthly fall in average input costs, while factory gate prices were little-changed from the previous month.

Business confidence picked up in May, with firms generally optimistic that output will rise over the next year.

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2020 TeleTrade-DJ International Consulting Ltd

TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. You may change your cookie consent or view our cookie declaration here.

TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.