Contraction of Manufacturing Activity in China During May

SadaNews - A survey released today, Sunday, indicated a contraction in manufacturing activity in China during May, signaling ongoing pressures faced by the sector due to weak domestic demand and rising production costs.

According to data from the National Bureau of Statistics, the manufacturing Purchasing Managers' Index (PMI) dropped to 50 points in May, compared to 50.3 points in April.

A level of 50 points is the dividing line between growth and contraction, indicating that the sector lost momentum in the past month.

The reading was in line with the expectations of economists surveyed by Reuters, who anticipated the index would register 50 points.

The data reflects the ongoing challenges facing the world's second-largest economy, amid slowing domestic demand and rising operating costs, which pressure industrial performance and limit the pace of economic recovery.