Official data: China’s factory activities contracted for the second month in May
China’s manufacturing activities shrank for a second consecutive month in May, official data showed, underscoring ongoing weakness in industrial demand even as trade sentiment showed tentative signs of recovery.
China’s manufacturing activities shrank for a second consecutive month in May, official data showed, underscoring ongoing weakness in industrial demand even as trade sentiment showed tentative signs of recovery.
The official manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS), registered 49.5 in May, up slightly from 49.0 in April. Despite the modest improvement, the reading remained below the 50-point threshold that separates expansion from contraction, highlighting persistent challenges in the world’s second-largest economy.
Notably, new orders showed some resilience, with the sub-index climbing to 49.8 from 49.2 a month earlier. Export orders also improved markedly, rising to 47.5 from 44.7, signalling a mild rebound in overseas demand. Several surveyed firms reported a visible recovery in trade activity with the United States, including increased movement in both imports and exports.
However, the broader economic picture remains mixed. The non-manufacturing PMI — covering the services and construction sectors — edged down slightly to 50.3 in May from 50.4 in April. While still above the contractionary mark, the reading reflects a tepid pace of expansion in the services-driven parts of the economy.
The figures add to growing pressure on policymakers in Beijing to roll out additional support measures. With manufacturing momentum faltering and external risks from trade tensions still looming, analysts anticipate more proactive monetary and fiscal stimulus in the months ahead to bolster domestic demand and shield the economy from geopolitical headwinds.
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