China’s manufacturing activity fell at a slower pace in May as Covid-19 restrictions eased in key production hubs, but movement controls continued to weigh on demand and output, raising concerns about economic growth. in the second quarter.
The official Purchasing Managers’ Index (PMI) rose from 47.4 in April to 49.6 in May, the National Bureau of Statistics said on Tuesday, beating forecasts in a Reuters poll. reading of 48.6.
China’s factory slowdown is taking a toll on production lines in other major Asian economies, with Japan and South Korea reporting sharp drops in output.
Although the PMI hit a three-month high, it remained below the 50-point mark that separates contraction from growth for the third straight month.
“It shows that the impact of the Covid-19 outbreaks in May has not completely ended, leaving the economic outlook bleak since the second quarter in 2020,” said Pang Ming, chief economist at Huaxing Securities.
The production sub-index rose from 44.4 in April to 49.7 in May, while the new orders sub-index rose from 42.6 to 48.2.
“This showed that production and demand have recovered to varying degrees, but the recovery momentum needs to be reinforced,” said Zhao Qinghe, a senior statistician at the statistics agency.
Source: CNN Brasil
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