The official manufacturing purchasing managers’ index (PMI) came in at 48.8, down from 49.2 in April. This marks the second consecutive month that the PMI has fallen below the 50-point mark, which separates contraction from expansion.
The decline in the PMI was driven by a number of factors, including weaker demand, rising costs, and supply chain disruptions. New orders fell for the third consecutive month, while input prices rose at the fastest pace in over a year. The survey also found that manufacturers were facing difficulties in obtaining raw materials and components.
The slowdown in China’s manufacturing sector is a sign that the economy is facing headwinds. The government has taken a number of measures to boost growth, including cutting interest rates and increasing infrastructure spending. However, it remains to be seen whether these measures will be enough to prevent the economy from slowing further.
The weak manufacturing data is likely to weigh on global growth. China is a major exporter, and its slowdown will likely lead to lower demand for goods from other countries. This could have a knock-on effect on global economic growth.
The following are some of the key takeaways from the May PMI data:
- The manufacturing sector is in a state of contraction.
- The slowdown is being driven by weaker demand, rising costs, and supply chain disruptions.
- The government has taken a number of measures to boost growth, but it remains to be seen whether these measures will be enough.
- The weak manufacturing data is likely to weigh on global growth.