CCTV News:The China Federation of Logistics and Purchasing and the Service Industry Research Center of the National Bureau of Statistics jointly released the Purchasing Managers Index of China’s manufacturing industry in May today (May 31st). The data shows that with the gradual improvement of the epidemic prevention and control situation, a series of policies have been implemented, the production and market demand of enterprises have been replenished, and the economic operation tends to recover.

In May, the purchasing managers’ index (PMI) of China’s manufacturing industry was 49.6%, up 2.2 percentage points from the previous month, which was close to the average value of PMI in the first quarter of 2022.
From the perspective of sub-industries, among the 21 sub-industries covering the upper, middle and lower reaches of the manufacturing industry chain, the purchasing managers’ index of 16 sub-industries increased from last month, and the purchasing managers’ index of 12 sub-industries was higher than 50%, indicating that the recovery of manufacturing industries was more coordinated. From the perspective of enterprises of different scales, the purchasing managers’ index of large, medium and small enterprises has increased compared with last month, among which, large enterprises have risen to more than 50%, indicating that with the improvement of epidemic prevention and control situation, large enterprises have returned to normal operation quickly, and small and medium-sized enterprises have also tended to recover.
Zhang Liqun, a researcher at the State Council Development Research Center:In May, the purchasing managers’ index began to rebound, which showed that the impact of the epidemic was obviously weakened, and it also showed that China’s economy was such a strong resilience, including a series of policies and measures to deal with triple pressures, including short-term shocks, and the effect was obvious.

In May, the supply chain of industrial chain was gradually unblocked, and the operating rate and capacity utilization rate of enterprises were continuously improved. The manufacturing production index was 49.7%, up 5.3 percentage points from last month. Among them, the production compensation of equipment manufacturing industry is particularly obvious. In May, the production index of equipment manufacturing industry increased by 7.7 percentage points from the previous month to 48%. In addition, the production indexes of consumer goods manufacturing and basic raw materials industries both rebounded rapidly, and both rebounded to 50.9%.
From the demand point of view, the new order index of consumer goods manufacturing, equipment manufacturing and basic raw materials industries increased by 4.4, 5.9 and 7.5 percentage points respectively compared with last month. At the same time, due to the recovery of domestic manufacturing capacity, China’s manufacturing exports also recovered in May, and the new export order index rose by 4.6 percentage points from the previous month to 46.2%.
Cai Jin, Vice President of China Federation of Logistics and Purchasing:The index rebounded sharply in May, reflecting that the trend of China’s economic recovery and revitalization is further accelerating, especially at both ends of supply and demand, which shows that the recovery and revitalization has a good demand momentum and a very good supply foundation.

In terms of employment, the employee index was 47.6% in May, up 0.4 percentage points from the previous month, ending the trend of two consecutive declines since March, indicating that with the downward adjustment of epidemic prevention and control response in many places in May, the number of enterprises returning to work stopped falling and rebounded. In May, the proportion of enterprises reflecting insufficient labor supply was 9.4%, the lowest level since 2021.
The market demand base needs to be further consolidated.
Experts said that while the current economic recovery situation is good, we should also see that the current economic recovery is still insufficient, the overall market demand is insufficient, and the production and operation of enterprises have not completely returned to normal. Further efforts are needed in policy implementation to stabilize the industrial chain and supply chain.

Experts said that although the purchasing managers’ index of manufacturing industry rebounded significantly in May, it still did not rise to the expansion range of more than 50%, and the recovery of market demand was insufficient. In May, the proportion of enterprises reflecting insufficient market demand was 44.7%, up 4.4 percentage points from the previous month; The proportion of enterprises reflecting the shortage of funds was 32.8%, up 1.6 percentage points from last month.
Cai Jin, Vice President of China Federation of Logistics and Purchasing:The foundation of demand should be further strengthened, and at the same time, liquidity supply should be increased to alleviate the situation of tight capital of enterprises.

In addition, the production of enterprises has not completely returned to normal. Although the resumption of work and production in the Yangtze River Delta has been steadily advanced, enterprises are still under pressure from epidemic prevention and control, funds and personnel management in the process of resuming work and production. The production index of enterprises is still below 50%, and there is still room for further recovery.
Experts said that in order to achieve the important goal of stabilizing the economic market, it is necessary to continue to coordinate the prevention and control of epidemic situation and economic and social development, further implement the logistics guarantee, stabilize the industrial chain supply chain, comprehensively promote the resumption of work and production, boost domestic demand, ensure the job market, and support small and medium-sized market players.

Zhang Liqun, a researcher at the State Council Development Research Center:Do a good job in the implementation of various policies, especially in coordinating the overall situation of epidemic prevention and control, steady growth and safeguarding people’s livelihood. On this basis, I believe that the trend of purchasing managers’ index in the future will continue to improve.