CHINA’S OFFICIAL PMI FOR MAY SURPRISES BY A LARGE MARGIN

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June 1, 2013

BEIJING – China’s official Purchasing Manager’s Index (PMI) has beat market expectations and improved in May, inconsistent with other indicators and anecdotal reports on China’s manufacturing sector. Historically, the month of May reports a lower PMI by 2.7points on average, even after seasonal adjustment. Considering this, the increase in May over April this year could be even stronger than it appears, according to a research report by ANZ Bank. But while the data may ease some concerns of rapid deterioration of the Chinese economy, the impact may be short-lived, ANZ says.