China's manufacturing sector has shown signs of marginal recovery, with the Purchasing Managers' Index (PMI) inching up to 49.5 in May from 49.0 in April, according to the latest data released on May 31, 2025. This slight increase, although still in contraction territory, signifies a potential stabilization after previous months of underperformance.
The mild uptick in the PMI, which is closely watched as a barometer of manufacturing health, suggests that while the sector is yet to return to expansion mode—the benchmark being a reading above 50—the momentum may be gradually shifting. Economists are optimistic that this could herald a steady recovery in the coming months, provided that supportive measures and favorable global trade conditions continue.
Observers remain cautiously optimistic, noting that while the increase is modest, it reflects underlying resilience in the manufacturing sector, amid challenges like global supply chain disruptions and fluctuating demand. Investors and policymakers alike will be monitoring upcoming data releases to gauge whether this upward trend will solidify as 2025 progresses.
