BEIJING- China’s factory activity likely maintained a steady growth momentum in May after months of expansion following a COVID-induced slump, although high raw materials costs continue to weigh on the outlook.
The official manufacturing Purchasing Manager’s Index (PMI) is expected to hit 51.1 in May, according to the median forecast of 21 economists polled by Reuters. A reading above 50 indicates an expansion in activity on a monthly basis.
That PMI reading would be unchanged from April, when China’s factory activity growth slowed as supply bottlenecks and rising costs weighed on production and overseas demand lost momentum.
“High-frequency data showed that economic activity picked up since May on a monthly basis, which is conducive for an improvement in the manufacturing activity,” said Bank of Communications in a report.
