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China factory output at five-month high

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China’s official PMI grew in May, reaching a five-month high of 50.8.

AFP reports that the result beat a forecast if 50.6, based on a median in a survey conducted by Down Jones Newswires of predictions by eight economists.

A score of 50 in the monthly survey separates growth and contraction, with any score above 50 indicating growth.

The official PMI is weighted towards larger, state-run factories. The separate flash HSBC PMI, weighted towards privately-owned factories, shows these to be in contraction.

Nine out of 13 sub-indices in the official PMI were over 50, Reuters notes, and there was particular strength in this month’s new orders sub-index.

"The PMI reading continued to improve in May, indicating that a trend of economic stabilization is becoming more evident," said the Development Research Centre’s Zhang Liqun.

Image: Wired.com

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