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China's official manufacturing PMI for May contracts more than expected by Investing.com




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Investing.com – China's factory activity in May contracted more than expected in connection with the ongoing US trade dispute

It dropped to 49.4 from 50.1 in April, National Bureau of Statistics reported. Analysts earlier expect the figure to fall to 49.9 in May.

A reading below 50 indicates contraction.

For May was 54.3, in line with expectations and unchanged from April.

PMI is closely followed by investors who attach great importance to signs of slowing growth during the ongoing US-China trade war.

Former Governor of People's Bank of China Dai Xianglong said on Friday that he did not expect a major trade breakthrough when Chinese President Xi Jinping meets with his US counterpart Donald Trump next month at the G20 meeting.

"The fall in the headline index was mostly driven by weaker new orders. Export orders fell sharply, suggesting that [US President Donald] Trump's latest tariff increase may already undermine foreign demand," said Julian Evans-Pritchard, senior economics in China at Capital Economics, in a Bloomberg report

Caixin production PMI, which includes a larger mix of small and medium businesses, expires on June 3.

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