China’s official manufacturing purchasing managers’ index (PMI) rose to 50.8 in May from April’s 50.4, hitting five-month’s high, according to data released by China’s National Bureau of Statistics.
The gauge has been climbing for a continuous three months, indicating the economy may be stabilizing.
The new order index went up to 52.3 from April’s 51.2, reaching the highest level in six months.
Beijing’s mini-stimulus is expected to help stabilize growth and boost business sentiment, BofA Merrill Lynch Global Research writes in a report.
“Domestic demand could be improved in the second quarter and we are comfortable to maintain our second quarter GDP growth forecast at 7.5% year-over-year,” says the report.