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China's official manufacturing and non-manufacturing PMIs both rose in May, with the manufacturing PMI hitting an eight-month high, indicating that the pace of manufacturing expansion has accelerated and the development momentum has further increased. However, this month’s report shows that companies with tight funds have risen for three consecutive months. This shows that the financial strain is still under pressure and the financial services entity’s economic support needs to be further strengthened.

At the same time, the proportion of companies that reflect the high cost of raw materials and labor costs continues to exceed 40%, and the cost pressure is still one of the major issues in the production and operation of enterprises.

The National Bureau of Statistics and the Federation of Logistics and Purchasing (CFLP) jointly announced on Thursday that the official manufacturing purchasing managers index (PMI) rose to 51.9 in May, far higher than the median forecast of 51.3 in the Reuters survey. It was the highest level since September last year when it was 52.4.


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