China’s factory activity contracted at a slower rate in May after a reprieve in the tariff war with the US unclogged trade flows, even as weak domestic demand continues to weigh on the economy. The official manufacturing purchasing managers’ index was 49.

Official PMI remains below 50, with ‘persistently high uncertainty’ in global trade tipped to weigh on growth outlook in both US and China.

BEIJING] China’s manufacturing activity contracted in May for a second month, an official survey showed on Saturday (May 31), fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States.