| Consensus | Consensus Range | Actual | Previous | |
| Index | 51.3 | 50.4 to 51.6 | 51.8 | 52.2 |
Highlights
The S&P Global China manufacturing PMI showed conditions were solid but moderated in the sector in May, with the headline index falling to 51.8 from 52.2 in April. This survey continues to show stronger conditions in the sector than official PMI survey data and has shown expansion in the sector for six consecutive months
Respondents to the S&P PMI survey reported slower growth in output and new orders in May, with new export orders reported to have fallen slightly. The survey also shows a small fall in payrolls while its measure of business confidence shows firms are less optimistic about output growth over the next twelve months. Growth in input costs and selling prices were reported to have eased for the first time in six and seven months respectively.
Market Consensus Before Announcement
Manufacturing business likely to show slower growth at 51.3 in the May, down from 52.2 in April.
Definition
The S&P Manufacturing Purchasing Managers' Index (PMI) is based on monthly a questionnaire that surveys of over 500 companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.