China’s factory sector picks up steam, easing fears of an economic slowdown
Manufacturing in the world’s second-largest economy grew at the fastest pace in eight months in May, according to government figures
China’s vast manufacturing sector grew at the fastest pace in eight months in May, blowing past expectations and easing concerns about an economic slowdown even as risks from trade tensions with the United States and a crackdown on debt point to a bumpy ride ahead.
The official Purchasing Managers’ Index (PMI) released on Thursday rose to 51.9 in May, from 51.4 in April, and remained well above the 50-point mark that separates growth from contraction for the 22nd straight month.
Analysts surveyed by Reuters had forecast the reading would dip slightly to 51.3.
Production expanded at the fastest rate in six months while growth in new orders rose to an eight-month high. Export orders also accelerated from the previous month.
The strong manufacturing sector readings defy concerns about an expected loss of momentum in Asia’s powerhouse economy as policymakers navigate debt risks and rocky trade relations with the United States.
Washington said on Tuesday that it was moving forward with its threat to apply tariffs on Chinese imports worth up to US$50 billion, reviving fresh worries of a trade war between the world’s two biggest economies. Trade tensions had ebbed only recently after Beijing pledged to buy more from the United States.
