The HSBC PMI for May rises to 49.4 from 48.1, a 4-month high, but below forecasts for 49.7. This print follows the weekend release of the official PMI gauge which rose to 50.8, a 5-month high.
“The final PMI reading for May confirmed that the economy is stabilizing, but it is too early to say that it has bottomed out, particularly in light of a weaker property sector,” says HSBC's chief China economist Qu Hongbin. "We expect both monetary and fiscal policy to be loosened gradually over the coming months."
Previously: China PMI rises to 5-month high