China's economic health appears to be on a steady path, as indicated by the latest Chinese Composite Purchasing Managers Index (PMI). In May 2025, the PMI recorded a modest increase, rising to 50.4 from April's 50.2. This slight uptick points towards expanding activity in both the manufacturing and service sectors combined, albeit at a marginally higher pace than the previous month.
On May 31, 2025, this new data was released, reflecting a continuation of China's economic trajectory into positive territory, as any PMI reading above 50 signals expansion. The steady increase, albeit minor, signifies resilience in China's business activity despite global economic pressures.
Economists and analysts will be watching closely to see if this upward trend can be sustained in the coming months, amid challenges such as geopolitical tensions and uncertainties in international trade. The data will provide some reassurance to market participants looking for signs of economic robustness in the world's second-largest economy.
