The Purchasing Manager Index (PMI) for China's manufacturing sector remained in the expansion zone and came in at 51% in May, down 0.1% from April, as reported by the service industry survey center of the National Bureau of Statistics (NBS) and China Federation of Logistics & Purchasing on May 31.
The production index was 52.7%, up 0.5% from the previous month, indicating that the expansion of manufacturing activities has been accelerated. Judging from the industry situation, production index of the agricultural and sideline food processing industry, the alcoholic beverage and refined tea industry, the ferrous metal smelting and calendering processing industry, the general machinery manufacturing industry and the railways, boats and ships, aerospace equipment manufacturing industry maintained at a prosperous range of 54.0% or above.
The high-tech manufacturing industry continued to rise. According to the analysis by Qing-He Zhao, a senior statistician at the Service Industry Survey Center of the National Bureau of Statistics (NBS), PMI of the high-tech manufacturing industry has risen for three consecutive months and came up to a prosperous range of 55.2% this month, suggesting that the industry maintained a good momentum of fast growth. The results also showed that the expected index of production and operation activities of the high-tech manufacturing industry rose to a prosperous range of 61.5%. In addition, the employment index remained at an expansion range of more than 51.0% for three consecutive months, showing that there was a continuous increase in employment and the enterprises' confidence in market development kept continuously strengthened.
"The price index has reached a high point in recent years." Qing-He Zhao said. The purchase price index and ex-factory price index of major raw materials were 72.8% and 60.6%, respectively, which were 5.9% and 3.3% higher than those of last month. From the industry situation, the two indexes of the petroleum, coal and other fuel processing industry, the ferrous metal smelting and calendering processing industry, and the non-ferrous metal smelting and calendering processing industry were higher than 73.0%. Among them, the ex-factory price index of the ferrous metal smelting and calendering processing industry stayed above 80.0% for three consecutive months.
Currently, enterprises of different sizes performed differently. Qing-He Zhao said that PMI of the large and medium-sized enterprises was 51.8% and 51.1%, respectively, up 0.1% and 0.8% from last month, and that of the small enterprises fell to a contractive range of 48.8%, down 2.0% from last month.
“The PMI index of small enterprises fluctuated recently. The negative factors, such as the increase in production cost, fluctuations in overseas market demand, the appreciation of the RMB, may have started to impact the small enterprises, and the future trends must be closely watched.” said Bin Wen, a chief researcher of China Minsheng Bank. In such circumstances, the supportive policies for small and medium size enterprises should be effectively implemented to ensure the supply of bulk commodities and stabilize their prices.
In spite of the rising prices of raw materials, FCS Group still maintains a fast growth in 2021, which exactly confirms NBS’s forecast that the high-tech manufacturing industry would continue to expand. At Chinaplas 2021, all exhibited products of FCS Group were widely acknowledged by customers, and the sales volume has been rising globally.
Read more：FCS Embraces Huge Potential Orders In Chinaplas 2021
This year, two sets of FB-280R two-component injection molding machine were installed in Supreme Group, Malanpur branch, which makes the total number of seven machines in the same branch. It indicates that the overseas markets are recovering!
Futher reading：Installation Of FCS Two-Component Injection Molding Machine At Supreme Group
Two-Component Injection Molding Machine: FB-R Series
FB-R series, FCS 2K technology has been developed for over 37 years and over 5,300 sets (USD 430 million) have been sold. With clamping force from 140-1900 tons, this machine could be applied in various fields.