China’s Factory Activity Fell at a Softer Pace in May

Source: S&P Global

Manufacturing activity in China dropped at a softer pace in May compared to April as demand conditions improved last month. CSI 300 Index down -0.20%, CNYUSD down -0.19%.

• The Caixin China general manufacturing purchasing managers’ index rose to 48.1 in May, from a 26-month low of 46 in April.
• Chinese goods producers’ output and demand remained in the negative zone as COVID-19 outbreaks in major cities like Shanghai have yet to slow down in May.
• Meanwhile, the rate of fall in output and demand eased, pointing to improving local conditions for manufacturers at home.
• Wang Zhe, senior economist at Caixin Insight Group stated that demand was slightly stronger than supply as foreign demand remained subdued.
• Zhe further stated that the measure of new export orders remained in the contractionary zone for ten straight months in May as Covid-19 outbreaks continued to affect transportation and logistics.