(Yicai Global) May 31 -- China’s manufacturing activity recovered in May even though remaining in contraction for the third straight month as Covid-19 containment measures were eased in cities.

The official manufacturing purchasing managers’ index was at 49.6, up 2.2 points from April's 26-month low, according to data disclosed by the National Bureau of Statistics today.

The PMI for manufacturing and non-manufacturing both rebounded from April even though staying below the 50 mark that separates expansion from contraction.

All five sub-indexes that make up the manufacturing PMI surged. That for employment climbed by 0.4 points to 47.6, indicating increased hiring. The sub-index of production jumped 5.3 points to 49.7. That for new orders increased by 5.6 points to 48.2.

The non-manufacturing PMI rose to 47.8 from April's 41.9. The sub-index of business activity climbed by 5.9 points to 47.8 percent, implying significant improvements in the service sector. The construction sector stood out as its business activity index exceeded 50 to reach 52.2, suggesting expansion despite a 0.5-point decrease from April. Business activity in the service sector surged by 7.1 points to 47.1.

Companies that engage in business other than manufacturing were increasingly optimistic about the future. The sub-index for business activity predictions rose by 2 points to 55.6. Meanwhile, commodity prices grew slower as the input price index declined by 1.2 points to 52.2. All the other three sub-indexes rebounded but remained below 50.

The NBS composite PMI output index rose 5.7 points to 48.4 in May, staying in contraction territory for the third straight month despite rebounding.

Editor: Emmi Laine, Xiao Yi