The UK construction industry has strongly criticized proposed trade measures that would introduce stricter steel tariffs of 50% alongside quota reductions of up to 60%. Industry representatives warn these measures will drastically inflate costs for private housing and public infrastructure, particularly threatening the viability of companies involved in the €115 billion HS2 railway project, where large volumes of imported steel are already contracted. Thorsten Gerber, CEO of the Gerber Group, warned that these protectionist approaches disproportionately harm SMEs, automotive manufacturers, and the entire downstream metal processing sector, urging both London and Brussels to reconsider their strategies to avoid massive economic damage and widespread job losses.

NBS data showed that in February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. In February, the composite PMI output index was 49.5%, down 0.3 percentage points from the previous month, indicating that overall production and business activities of enterprises in China slowed down from the previous month. Huo Lihui, Chief Statistician of the NBS Service Sector Survey Center, interpreted China’s PMI for February 2026. Performance of China’s PMI in February 2026 I. Performance of China’s Manufacturing PMI In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. By enterprise size, the PMI for large enterprises was 51.5%, up 1.2 percentage points from the previous month and above the threshold; the PMIs for medium- and small-sized enterprises were 47.5% and 44.8%, down 1.2 and 2.6 percentage points from the previous month, respectively, and below the threshold. By sub-index, among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.6%, down 1.0 percentage points from the previous month, indicating that manufacturing production activities slowed down. The new orders index was 48.6%, down 0.6 percentage points from the previous month, indicating a decline in the prosperity of market demand in the manufacturing sector. The raw material inventory index was 47.5%, up 0.1 percentage points from the previous month, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed slightly. The employment index was 48.0%, down 0.1 percentage points from the previous month, indicating a slight pullback in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 49.1%, down 1.0 percentage points from the previous month, indicating that delivery times of raw material suppliers in the manufacturing sector slowed compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. By industry, the construction business activity index was 48.2%, down 0.6 percentage points from the previous month; the services business activity index was 49.7%, up 0.2 percentage points from the previous month. From the perspective of service industries, the business activity indices for industries such as accommodation, catering, and culture/sports/entertainment were all in a high prosperity range above 60.0%; the business activity indices for industries such as capital market services and real estate were all below the threshold. The new orders index was 45.2%, down 0.9 percentage points MoM, indicating a pull back in non-manufacturing market demand. By industry, the new orders index for the construction industry was 42.2%, up 2.1 percentage points MoM; the new orders index for the services industry was 45.7%, down 1.4 percentage points MoM. The input prices index was 50.9%, up 0.9 percentage points MoM, indicating an overall increase in the price level of inputs used by non-manufacturing enterprises for business operations. By industry, the input prices index for the construction industry was 49.1%, down 2.9 percentage points MoM; the input prices index for the services industry was 51.2%, up 1.5 percentage points MoM. The selling price index was 48.8%, unchanged from the previous month and still below the threshold, indicating that the overall level of non-manufacturing selling prices was lower than in the previous month. By industry, the selling price index for the construction industry was 47.6%, down 0.6 percentage points MoM; the selling price index for the services industry was 49.0%, up 0.1 percentage points MoM. The employment index was 46.0%, down 0.1 percentage points MoM, indicating a slight pull back in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 42.5%, up 1.4 percentage points MoM; the employment index for the services industry was 46.6%, down 0.4 percentage points MoM. The business activity expectations index was 55.0%, down 1.0 percentage point MoM and still in a relatively high prosperity range, indicating that non-manufacturing enterprises remained confident in market development. By industry, the business activity expectations index for the construction industry was 50.9%, up 1.1 percentage points MoM; the business activity expectations index for the services industry was 55.8%, down 1.3 percentage points MoM. III. Performance of China’s Composite PMI Output Index In February, the composite PMI output index was 49.5%, down 0.3 percentage points MoM, indicating that overall production and business activities of enterprises in China slowed down compared with the previous month. In February, the manufacturing PMI pulled back, while the non-manufacturing business activity index rebounded slightly. —Huo Lihui, Chief Statistician of the NBS Service Survey Center, interprets China’s PMI for February 2026 On March 4, 2026, the NBS Service Survey Center and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In February, affected by factors such as the Chinese New Year holiday, the manufacturing PMI was 49.0, down 0.3 percentage points MoM; the non-manufacturing business activity index was 49.5, up 0.1 percentage points MoM; and the composite PMI output index was 49.5, down 0.3 percentage points MoM. I. The Manufacturing PMI Pulled Back In February, the manufacturing PMI was 49.0, with the prosperity level down from the previous month. Judging from historical data, the PMI in the month that includes the Chinese New Year mostly shows some fluctuations. In particular, this year’s Chinese New Year holiday was extended and fell entirely in mid-to-late February, which had some impact on enterprises’ production and operations, and overall market activity in manufacturing declined. (1) Both supply and demand slowed down. The production index and the new orders index were 49.6 and 48.6, down 1.0 and 0.6 percentage points MoM, respectively, indicating a pullback in manufacturing production and market demand. By industry, the production index and new orders index for industries such as agricultural and sideline food processing and computers, communications and electronic equipment were both above the critical point, with supply and demand prosperity remaining in expansion; in industries such as textiles, apparel and accessories and automobiles, both indices remained below the critical point, with weak market activity. (2) The PMI for large enterprises continued to expand. The PMI for large enterprises was 51.5, up 1.2 percentage points MoM, with production and operations remaining in expansion; small and medium-sized enterprises were more affected by the Chinese New Year holiday, with PMIs of 47.5 and 44.8 this month, down 1.2 and 2.6 percentage points MoM, respectively, and their prosperity levels pulled back. (3) Growth momentum in high-tech manufacturing continued to emerge. The high-tech manufacturing PMI was 51.5, remaining in expansion territory and significantly higher than the overall manufacturing level, indicating a favorable development trend in related industries; the consumer goods industry PMI was 48.8, up 0.5 percentage points MoM, with a rebound in the prosperity level; the PMIs for equipment manufacturing and high energy-consuming industries were 49.8 and 47.8, down 0.3 and 0.1 percentage points MoM, respectively, with their prosperity levels pulling back. (4) Enterprise expectations improved. The index of expectations for production and business activities was 53.2, up 0.6 percentage points MoM, indicating that manufacturing enterprises’ confidence in market development after the Chinese New Year strengthened. By industry, the index of expectations for production and business activities in industries such as general equipment and railway, ship, aerospace and aviation equipment was above 56.0, in a relatively high prosperity range, and related enterprises were more optimistic about near-term industry development. II. Non-Manufacturing Business Activity Index Edged Up Slightly In February, the non-manufacturing business activity index stood at 49.5%, up 0.1 percentage point from the previous month, indicating some improvement in the overall prosperity level of the non-manufacturing sector. (I) The service sector’s prosperity level rebounded. The service sector business activity index was 49.7%, up 0.2 percentage point from the previous month. By industry, driven by the Chinese New Year holiday effect, business volumes grew relatively quickly in industries related to residents’ travel and consumption; among them, the business activity indices for accommodation, catering, and culture, sports and entertainment all remained in the high-prosperity range above 60.0%, while those for retail and air transport rose to above 52.0%. Meanwhile, the business activity indices for capital market services and real estate remained at low levels, with subdued market activity. From the perspective of market expectations, the service sector business activity expectations index was 55.8%, remaining in a relatively high-prosperity range, indicating that service sector enterprises remained optimistic about near-term market developments. (II) The construction sector’s prosperity level declined. Affected by factors such as employees of enterprises returning to their hometowns in large numbers during the Chinese New Year holiday and the suspension of construction at some projects, the construction sector business activity index fell to 48.2%, down 0.6 percentage point from the previous month, and the construction sector’s prosperity level continued to pull back. From the perspective of market expectations, the construction sector business activity expectations index was 50.9%, up 1.1 percentage points from the previous month, returning above the threshold, indicating that construction sector enterprises’ confidence in future industry development had somewhat recovered. III. Composite PMI Output Index Pulled Back In February, the composite PMI output index was 49.5%, down 0.3 percentage point from the previous month, indicating that overall production and business activities of enterprises in China slowed down somewhat MoM. The manufacturing production index and the non-manufacturing business activity index, which make up the composite PMI output index, were 49.6% and 49.5%, respectively.

[SMM Hot Topic: From "Scale" to "Quality" – The Shift and Restructuring of Traditional Construction Steel Demand] From 2026 to 2030, the domestic demographic dividend will gradually shrink, and the era of rapid growth in the real estate industry will come to an end, with the industry's development logic shifting from scale expansion to quality improvement.

The National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) released China's purchasing managers' index (PMI) for January 2026 today (31st). The data showed that in January, China's manufacturing market demand tightened somewhat, but enterprise production maintained an expansionary trend, with the industrial structure continuing to optimize. The service sector operated relatively stably, with business expectations continuously improving. The manufacturing PMI for January 2026 was 49.3%, a decrease of 0.8 percentage points from the previous month. The PMI for equipment manufacturing in January was 50.1%, and for high-tech manufacturing, it was 52%. Both equipment and high-tech manufacturing sectors are developing steadily and positively, with the manufacturing industrial structure continuously optimizing. Operation of China's Purchasing Managers' Index in January 2026 I. Operation of China's Manufacturing PMI In January, the manufacturing PMI was 49.3%, a decline of 0.8 percentage points from the previous month, indicating a pullback in the level of manufacturing activity. By enterprise size, the PMI for large enterprises was 50.3%, down 0.5 percentage points from the previous month, yet still above the critical point; the PMIs for medium and small enterprises were 48.7% and 47.4% respectively, dropping by 1.1 and 1.2 percentage points from the previous month, both below the critical point. Looking at the sub-indices, among the five sub-indices constituting the manufacturing PMI, the production index and supplier delivery time index were both above the critical point, while the new orders index, raw material inventory index, and employment index were all below the critical point. The production index stood at 50.6%, a drop of 1.1 percentage points from the previous month, yet still above the critical point, indicating that manufacturing production activities remained in an expansionary state. The new orders index was 49.2%, a decrease of 1.6 percentage points from the previous month, suggesting a slowdown in manufacturing market demand. The raw material inventory index was 47.4%, down 0.4 percentage points from the previous month, indicating a continued reduction in the stock of major raw materials in the manufacturing sector. The employment index was 48.1%, a decline of 0.1 percentage points from the previous month, showing a slight pullback in the employment climate for manufacturing enterprises. The supplier delivery time index was 50.1%, a decrease of 0.1 percentage points from the previous month, yet still above the critical point, indicating a continuous acceleration in the delivery times of raw material suppliers in the manufacturing sector. II. Operation of China's Non-Manufacturing PMI In January, the non-manufacturing business activity index was 49.4%, a drop of 0.8 percentage points from the previous month. By industry, the construction sector's business activity index was 48.8%, a decrease of 4 percentage points from the previous month; the service sector's business activity index was 49.5%, a decline of 0.2 percentage points from the previous month. Looking at the service sector, the business activity indices for monetary and financial services, capital market services, insurance, and other industries were all above 65.0%; while the business activity indices for wholesale, accommodation, real estate, and other industries were all below the threshold. The new orders index stood at 46.1%, down 1.2 percentage points MoM, indicating a decline in market demand prosperity in the non-manufacturing sector. By sector, the new orders index for construction was 40.1%, down 7.3 percentage points MoM; the new orders index for services was 47.1%, down 0.2 percentage points MoM. The input prices index was 50.0%, down 0.2 percentage points MoM, at the threshold, indicating that input prices for non-manufacturing enterprises' operational activities were generally flat compared to the previous month. By sector, the input prices index for construction was 52.0%, up 1.2 percentage points MoM; the input prices index for services was 49.7%, down 0.4 percentage points MoM. The selling price index was 48.8%, up 0.8 percentage points MoM, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By sector, the selling price index for construction was 48.2%, up 0.8 percentage points MoM; the selling price index for services was 48.9%, up 0.8 percentage points MoM. The employment index was 46.1%, unchanged from the previous month, indicating that the employment prosperity of non-manufacturing enterprises was basically stable. By sector, the employment index for construction was 41.1%, up 0.1 percentage points MoM; the employment index for services was 47.0%, unchanged from the previous month. The business activity expectations index was 56.0%, down 0.5 percentage points MoM, still remaining in a high prosperity range, indicating that most non-manufacturing enterprises maintain optimistic market expectations. By sector, the business activity expectations index for construction was 49.8%, down 7.6 percentage points MoM; the business activity expectations index for services was 57.1%, up 0.7 percentage points MoM. III. Operation of China's Composite PMI Output Index In January, the composite PMI output index was 49.8%, down 0.9 percentage points MoM, indicating that the overall production and operating activities of Chinese enterprises slowed down compared to the previous month. China's Purchasing Managers' Index Pulled Back in January —Huoli Hui, Chief Statistician of the NBS Service Industry Survey Center, Interprets China's Purchasing Managers' Index for January 2026 On January 31, 2026, the NBS Service Industry Survey Center and the China Federation of Logistics & Purchasing released China's Purchasing Managers' Index. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In January, the manufacturing PMI, non-manufacturing business activity index, and composite PMI output index registered 49.3%, 49.4%, and 49.8%, respectively, down 0.8, 0.8, and 0.9 percentage points MoM, indicating a pullback in economic prosperity. I. Manufacturing PMI Declined Slightly, While Production Continued to Expand In January, as some manufacturing industries entered the traditional off-season and effective market demand remained insufficient, the manufacturing PMI stood at 49.3%, reflecting a decline in prosperity compared to the previous month. (1) Enterprise production continued to expand. The production index was 50.6%, above the threshold, indicating sustained expansion in manufacturing production; the new orders index was 49.2%, reflecting a pullback in market demand. By sector, the production and new orders indices for agricultural and non-staple food processing, railway, ship, aerospace equipment, and other industries all exceeded 56.0%, indicating rapid release of production and demand; for petroleum, coal, and other fuel processing, automotive, and other industries, both indices were below the threshold, suggesting slowed market demand and a pullback in production in related sectors. (2) Both price indices rebounded. Influenced by factors such as recent price increases in some bulk commodities, the major raw material purchase price index and ex-factory price index registered 56.1% and 50.6%, respectively, up 3.0 and 1.7 percentage points MoM. Notably, the ex-factory price index rose above the threshold for the first time in nearly 20 months, indicating an overall improvement in the price level of the manufacturing market. By sector, the major raw material purchase price index and ex-factory price index for non-ferrous metal smelting and rolling processing, electrical machinery and equipment, and other industries both rose above 55.0%, reflecting overall price increases for raw material procurement and product sales in related sectors; for timber processing and furniture, petroleum, coal, and other fuel processing, and other industries, both price indices remained below the threshold. (3) The PMI for large enterprises continued to exceed the threshold. The PMI for large enterprises was 50.3%, remaining in expansion territory, with their supportive role continuing to be evident; the PMI for medium and small enterprises were 48.7% and 47.4%, respectively, down 1.1 and 1.2 percentage points MoM, indicating a pullback in their prosperity levels. (4) High-tech manufacturing continued to lead. The PMI for high-tech manufacturing was 52.0%, staying at or above the relatively high level of 52.0% for two consecutive months, indicating sustained positive development trends in related industries. The PMI for equipment manufacturing was 50.1%, remaining in expansion territory. The PMI for consumer goods and high-energy-consumption industries were 48.3% and 47.9%, respectively, reflecting a pullback in their prosperity levels. (V) Enterprise Expectations Remain Optimistic. The business activity expectations index stands at 52.6%, continuing to be above the critical point. By industry, the business activity expectations index for agricultural and sideline food processing, food and beverage refining, and tea industries has remained above 56.0% for two consecutive months, indicating strong confidence among related enterprises in the recent development of their respective industries. II. Non-Manufacturing Business Activity Index Pulls Back Slightly, Financial Market Activity Remains High In January, influenced by factors such as a decline in the prosperity of the construction industry, the non-manufacturing business activity index was 49.4%, down 0.8 percentage points from the previous month, indicating a pullback in the overall prosperity level of the non-manufacturing sector. (I) Service Sector Prosperity Drops Back Slightly. The service sector business activity index was 49.5%, down 0.2 percentage points from the previous month. By industry, the business activity indices for monetary financial services, capital market services, and insurance were all above 65.0%, showing high market activity; the real estate industry's business activity index fell below 40.0%, with a generally weak prosperity level. In terms of market expectations, the service sector business activity expectations index was 57.1%, up 0.7 percentage points from the previous month, indicating that service enterprises' confidence in the near-term market development has strengthened somewhat. (II) Construction Industry Prosperity Declines. Affected by recent low temperatures and the approaching Chinese New Year holiday, construction production and operations slowed down, with the business activity index at 48.8%, down 4.0 percentage points from the previous month, marking a significant pullback in the construction industry's prosperity level. In terms of market expectations, the construction industry business activity expectations index was 49.8%, dropping below the critical point, suggesting that construction enterprises are cautious about the industry's development prospects. III. Composite PMI Output Index Slightly Below Critical Point In January, the composite PMI output index was 49.8%, down 0.9 percentage points from the previous month, indicating that overall enterprise business activities slowed down compared to the previous month. The manufacturing production index and non-manufacturing business activity index, which make up the composite PMI output index, were 50.6% and 49.4%, respectively.

According to SMM's survey, the maintenance impact volume of construction steel this week (May 31 - June 6) saw a slight increase. Most steel mills continued their maintenance from last week, and some steel mills added new rolling line maintenance plans. The maintenance impact volume of construction steel was 1.1984 million tons, a month - on - month increase of 0.041 million tons.

The National Bureau of Statistics (NBS) released the operating conditions of China's Purchasing Managers' Index (PMI) in May, with the manufacturing PMI at 49.5%, up 0.5 percentage points from the previous month, indicating an improvement in the manufacturing sector's prosperity level. I. Operating Conditions of China's Manufacturing Purchasing Managers' Index In May, the manufacturing PMI stood at 49.5%, up 0.5 percentage points from the previous month, reflecting an improvement in the manufacturing sector's prosperity level. By enterprise size, the PMI for large enterprises was 50.7%, up 1.5 percentage points from the previous month and above the threshold; for medium-sized enterprises, it was 47.5%, down 1.3 percentage points from the previous month and below the threshold; for small enterprises, it was 49.3%, up 0.6 percentage points from the previous month but still below the threshold. Looking at the sub-indices, among the five sub-indices that constitute the manufacturing PMI, the production index was above the threshold, the supplier delivery time index was at the threshold, while the new orders index, raw material inventory index, and employment index were all below the threshold. The production index was 50.7%, up 0.9 percentage points from the previous month, rising above the threshold, indicating an acceleration in production activities of manufacturing enterprises. The new orders index was 49.8%, up 0.6 percentage points from the previous month, indicating a rebound in market demand prosperity in the manufacturing sector. The raw material inventory index was 47.4%, up 0.4 percentage points from the previous month but still below the threshold, indicating a narrowing decline in the inventory of major raw materials in the manufacturing sector. The employment index was 48.1%, up 0.2 percentage points from the previous month, indicating an improvement in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 50.0%, down 0.2 percentage points from the previous month and at the threshold, indicating that the delivery time of raw material suppliers in the manufacturing sector was basically flat compared to the previous month. II. Operating Conditions of China's Non-Manufacturing Purchasing Managers' Index In May, the non-manufacturing business activity index was 50.3%, down 0.1 percentage points from the previous month but still above the threshold, indicating a continued expansion in the non-manufacturing sector overall. By industry, the business activity index for the construction industry was 51.0%, down 0.9 percentage points from the previous month; for the service industry, it was 50.2%, up 0.1 percentage point from the previous month. By industry, the business activity indices for railway transportation, air transportation, postal services, telecommunications, radio, television, and satellite transmission services, internet software, and information technology services were all above 55.0%, indicating a relatively high prosperity level; while the business activity indices for the capital market services and real estate industries were all below the threshold. The new orders index was 46.1%, up 1.2 percentage points from the previous month, indicating a rebound in market demand sentiment in the non-manufacturing sector. By industry, the new orders index for the construction industry was 43.3%, up 3.7 percentage points from the previous month; the new orders index for the service sector was 46.6%, up 0.7 percentage points from the previous month. The input prices index was 48.2%, up 0.4 percentage points from the previous month, remaining below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises in their business activities was lower than that of the previous month. By industry, the input prices index for the construction industry was 48.0%, up 0.5 percentage points from the previous month; the input prices index for the service sector was 48.2%, up 0.3 percentage points from the previous month. The selling prices index was 47.3%, up 0.7 percentage points from the previous month, remaining below the threshold, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By industry, the selling prices index for the construction industry was 47.5%, up 0.3 percentage points from the previous month; the selling prices index for the service sector was 47.3%, up 0.8 percentage points from the previous month. The employment index was 45.5%, unchanged from the previous month, indicating that the employment sentiment in non-manufacturing enterprises was basically stable. By industry, the employment index for the construction industry was 39.5%, up 1.7 percentage points from the previous month; the employment index for the service sector was 46.6%, down 0.2 percentage points from the previous month. The business activity expectations index was 55.9%, down 0.1 percentage point from the previous month, still within a relatively high sentiment range, indicating that most non-manufacturing enterprises remained optimistic about market development. By industry, the business activity expectations index for the construction industry was 52.4%, down 1.4 percentage points from the previous month; the business activity expectations index for the service sector was 56.5%, up 0.1 percentage point from the previous month. III. Performance of China's Composite PMI Output Index In May, the composite PMI output index was 50.4%, up 0.2 percentage points from the previous month, indicating that the production and business activities of Chinese enterprises continued to expand overall. Interpretation of China's PMI in May 2025 by Zhao Qinghe, Senior Statistician at the Service Industry Survey Center of the National Bureau of Statistics: Manufacturing PMI Rebounds, Non-Manufacturing Business Activity Index Continues to Expand in May On May 31, 2025, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China's PMI. Zhao Qinghe, Senior Statistician at the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation. In May, the manufacturing PMI was 49.5%, up 0.5 percentage points from the previous month; the non-manufacturing business activity index was 50.3%, down 0.1 percentage point from the previous month; the composite PMI output index was 50.4%, up 0.2 percentage points from the previous month, indicating that China's overall economic output continued to expand. I. Rebound in Manufacturing PMI In May, the manufacturing PMI stood at 49.5%, indicating an improvement in the prosperity level compared to the previous month. (1) Accelerated production by enterprises. The production index was 50.7%, up 0.9 percentage points from the previous month, rising above the threshold, indicating an acceleration in manufacturing production activities. The new orders index was 49.8%, up 0.6 percentage points from the previous month. By industry, the production and new orders indices for agricultural and sideline food processing, special equipment, railway, shipbuilding, aerospace equipment, and other industries were all above 54.0%, showing rapid growth in both supply and demand. However, for industries such as textiles, chemical fibers, rubber and plastic products, ferrous metal smelting and rolling processing, and non-ferrous metal smelting and rolling processing, both indices were below the threshold, indicating insufficient release of production and demand. (2) PMI for large enterprises rose above the threshold. The PMI for large enterprises was 50.7%, up 1.5 percentage points from the previous month, returning to the expansion territory. Their production and new orders indices were 51.5% and 52.5%, respectively, up 1.7 and 3.0 percentage points from the previous month. The PMI for medium-sized enterprises was 47.5%, down 1.3 percentage points from the previous month, with the prosperity level pulling back. The PMI for small enterprises was 49.3%, up 0.6 percentage points from the previous month, showing some improvement in the prosperity level. (3) Continued expansion in high-tech manufacturing. By key industry, the PMI for high-tech manufacturing was 50.9%, remaining in the expansion territory for four consecutive months and continuing a good development trend. The PMIs for the equipment manufacturing and consumer goods industries were 51.2% and 50.2%, respectively, up 1.6 and 0.8 percentage points from the previous month, with both showing a rebound in prosperity levels. The PMI for high energy-consuming industries was 47.0%, down 0.7 percentage points from the previous month, indicating low market activity. (4) Rebound in both import and export indices. The new export orders index and the import index were 47.5% and 47.1%, respectively, up 2.8 and 3.7 percentage points from the previous month. Some enterprises involved in trade with the US reported in the survey that foreign trade orders were accelerating their restart, and the import and export situation had improved. (5) Improved market expectations. The expected index of production and business activities was 52.5%, up 0.4 percentage points from the previous month, indicating that manufacturing enterprises' confidence in the recent market development remained generally stable. Among them, the expected indices of production and business activities for industries such as agricultural and sideline food processing, food, beverage, and refined tea, automobiles, railway, shipbuilding, and aerospace equipment all remained above the relatively high prosperity threshold of 56.0%, with related enterprises being more optimistic about industry development. II. Continued Expansion in Non-Manufacturing Business Activity Index In May, the non-manufacturing business activity index was 50.3%, slightly down 0.1 percentage point from the previous month but still above the threshold, indicating that the non-manufacturing sector generally continued to expand. (I) The service sector's business climate improved slightly. The business activity index for the service sector was 50.2%, up 0.1 percentage point from the previous month. By industry, driven by the "Labour Day holiday" effect, residents' travel and dining consumption were relatively active. The business activity indices for industries such as railway transportation, air transportation, accommodation, and catering rebounded significantly, all entering expansion territory, indicating increased market activity. Meanwhile, the business activity indices for industries such as postal services, telecommunications, radio, television, and satellite transmission services, as well as internet software and information technology services, remained above 55.0%, indicating a relatively high-growth business climate and maintaining a good growth momentum. From the perspective of market expectations, the business activity expectations index was 56.5%, up 0.1 percentage point from the previous month. It has consistently remained above 56.0% since the beginning of the year, indicating that most service sector enterprises remain optimistic about market development. (II) The construction sector continued to expand. The business activity index for the construction sector was 51.0%, down 0.9 percentage point from the previous month, with expansion slowing down somewhat. Among them, the business activity index for civil engineering construction was 62.3%, up 1.4 percentage points from the previous month, rebounding for two consecutive months, indicating that construction projects across regions continued to accelerate. From the perspective of market expectations, the business activity expectations index was 52.4%, indicating that construction enterprises were relatively optimistic about market development expectations. III. The composite PMI output index rebounded slightly In May, the composite PMI output index was 50.4%, up 0.2 percentage point from the previous month, indicating that the production and operation activities of China's enterprises generally continued to expand. The manufacturing production index and the non-manufacturing business activity index, which constitute the composite PMI output index, were 50.7% and 50.3%, respectively.