Factory activity in China expanded at a slower pace in May as the country attempts to get back on track after the coronavirus, official data showed on Sunday (May 31), with the global economic slump making the sector’s recovery difficult.
China’s factories have stirred back to life after the lifting of strict lockdown measures imposed when the deadly pathogen surfaced in the central city of Wuhan, but the spread of the virus worldwide has dragged down key foreign markets – weighing heavily on Chinese exports.
The Purchasing Managers’ Index (PMI), a key gauge of activity in China’s factories, was at 50.6 points in May, remaining above the 50-point mark separating growth from contraction each month.
But the figure was down slightly from 50.8 the month before, and 52.0 in March, according to the National Bureau of Statistics (NBS).
NBS senior statistician Zhao Qinghe pointed to weakness in China’s imports and exports, saying “the epidemic situation and economic situation globally remain severe and complex, and foreign market demand is still shrinking”.
Mr Zhao said indexes on new export orders and imports remained at relatively low levels.
The “momentum of economic recovery is steady and improving”, Mr Zhao added, but there is weakness in some industries such as textiles and apparel.