HIGH POINT - A key privately reported index of China's manufacturing activity showed its strongest gains in two years for the month of May, driven by production increases and new orders.
Caixin/S&P global's purchasing managers index (PMI) increased to 51.7 from 51.4 in April. Any number above 50 represents growth, while a number under 50 indicates contraction. This index has now been in expansion for seven consecutive months.
"Business conditions in the Chinese manufacturing sector improved at a more pronounced rate midway into the second quarter of 2024. Production growth accelerated amid rising new orders. This led to faster accumulation of backlogged work, while purchasing activity also rose," the report`s summary stated.