China check in on Thursday that factory activity grew more than expected in May, with the legal manufacturing Purchasing Managers’ Index (PMI) coming in at 51.9 — the highest with since October 2017.
The Chinese manufacturing PMI was forecast to dip to 51.3 in May from 51.4 in April, conforming to a poll of economists by Reuters.
A reading above 50 indicates distention, while a reading below that signals contraction.
Strong supply-demand bankers and gains in global commodity prices contributed to the improvement in May’s manufacturing PMI scan, said Zhao Qinghe, a statistician at China’s National Bureau of Statistics.
Meanwhile, China reported utilizations PMI at 54.9 in May from 54.8 in April as the manufacturing giant transitions to a cares and consumption-driven economy.
“It’s been impressive that China has been qualified to maintain its momentum in spite of the fact that it’s clear that President Xi [Jinping] is announcing on his promise of maybe sacrificing a little bit of economic strength for stability,” divulged Carl Tannenbaum, chief economist at Northern Trust, referring to fiscal reforms in China.
Economic data from China is being closely watched in the thick of trade tensions between Beijing and Washington as President Donald Trump zooms in on America’s transact deficit with the world’s second-largest economy.
Earlier this week, the Chalk-white House announced it would have a final list of $50 billion in imports that would be voter to 25 percent tariffs by June 15, and two weeks later order announce investment restrictions on Chinese acquisitions of U.S. technology.
China’s true PMI gauge focuses on large companies and state-owned enterprises, while another set of readings by Caixin and IHS Markit targets on small and medium-sized enterprises — that data set is scheduled to be released on Friday.