China’s manufacturing purchasing managers’ index (PMI) fell to 49.4 in May, suggesting that the country’s economy is continuing to slow down, said the South China Morning Post.
The PMI, a gauge of sentiment among factory operators, fell from April’s performance of 50.1, and well below Bloomberg analysts median expectations of 49.9. A reading below 50 signals that the activity in the sector is contracting.
“The fall in the headline index was mostly driven by weaker new orders. Export orders dropped back particularly sharply, which suggests that [US President Donald] Trump’s latest tariff hike may already be undermining foreign demand,” said Julian Evans-Pritchard, senior China economist at Capital Economics.