MNI DATA IMPACT: China May Mfg PMI Falls To Contraction Zero

     BEIJING (MNI) - MNI highlights the following key takeaways from May PMI

data released by the National Bureau of Statistics on Friday:

     -- China's PMI decelerated to 49.4 after April's 50.1, missing the

MNI-survey forecast of 50.0. The index fell back to contractionary territory

below 50 after two months in the expansionary zone above 50.0.  

     --The production index continued to edge down 0.4 pp from April to 51.7 in

May, still above the breakeven 50. Meanwhile new orders fell sharply to 49.8

from April's 51.4, indicating declining demand.

     --New export orders also dropped sharply to 46.5 from 49.2 in April,

pointing to decelerating external demand.

     --The non-manufacturing PMI stayed flat at 54.3, the fifth consecutive

month it has been in the expansionary zone above 54. 

     --Business activity in railway and air transportation, Internet, software

and the information technology sector were above 60, while construction

registered 58.6. These results were all indicative of fast growth, the NBS said.

Results for the wholesale industry, capital market services and the insurance

sector were all below the breakeven 50.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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