Official data: China’s factory activities unexpectedly shrank in May
Industry insiders expected export activities to decline further in the coming months amid the heated trade tensions with key overseas trading partners, including the US and the EU.
China’s manufacturing activities unexpectedly contracted in May, dragged down by lower output, weak orders and lingering challenges in the property market. Data from the National Bureau of Statistics (NBS) showed the official purchasing managers’ index (PMI) fell to 49.5 in May from 50.4 in April. Economists initially expected the PMI to rise to 50.5 points.
A sub-index measuring new export orders fell to 47.2 from 50.6 in April.
Industry insiders expected export activities to decline further in the coming months amid the heated trade tensions with key overseas trading partners, including the US and the EU.
Meanwhile, the non-manufacturing index, which measures the activities in the service and construction sector inched slightly lower from the previous month to 51.1 points.