China’s manufacturing industry is showing signs of bouncing back, according to the latest data released by the National Bureau of Statistics (NBS). The Purchasing Managers’ Index (PMI), which measures the health of the manufacturing sector, rose to 49.5 in May, up from 49.0 in April.
Although a PMI reading below 50 still indicates contraction, the upward trend suggests that the manufacturing sector is improving. This is important not just for China but also for many countries in the Global South that trade with China or rely on Chinese goods and investment.
Zhao Qinghe, a senior statistician at the NBS, noted that production is accelerating and businesses are feeling more optimistic. The production sub-index climbed to 50.7, signaling faster output, while new orders increased to 49.8, showing that demand is picking up.
Large companies saw a significant boost, with their PMI returning to expansion territory at 50.7. High-tech manufacturing continued to grow for the fourth month in a row, reaching 50.9. Sectors like equipment manufacturing and consumer goods also saw gains, which could mean more jobs and opportunities in those industries.
Market confidence is on the rise, too. The index measuring production and business expectations increased to 52.5, indicating that manufacturers are hopeful about the future.
Analysts believe that government policies aimed at stimulating the economy are starting to work, helping businesses recover from recent challenges.
The service sector also showed resilience. The non-manufacturing PMI was at 50.3 in May, slightly down from April but still indicating growth. Tourism and catering services got a boost during the May Day holiday, which is good news for young people interested in these industries.
Wen Tao, an analyst at the China Logistics Information Center, emphasized the importance of boosting domestic demand and opening up to new global markets. “Efforts should be made to foster new growth in external demand, thereby reinforcing the country’s capacity to withstand risks,” he said.
For young entrepreneurs and workers in the Global South, China’s economic recovery could mean increased opportunities for trade, collaboration, and innovation.
