Services led Asia growth in May as manufacturing slows
Expectations of future output also weakened
While Asian economies regained momentum in May, the manufacturing sector continued to slow, according to IHS Markit PMI survey data. The Asia Composite PMI rose to 52.1 in May, up from 51.8 in April, driven by strong service sector growth.
IHS Markit economist Bernard Aw writes:
“The May PMI surveys brought further signs of easing in Asia’s manufacturing industry, which continues to lag behind wider global manufacturing growth trends. The latest slowing was mainly the result of a fall in the Caixin China Manufacturing PMI to an 11-month low.
The slowdown is likely to persist in the coming months, as signalled by forward-looking PMI sub-indices. New orders grew at a slower rate in May and expectations of future output weakened.”