The outlook for China's manufacturing sector deteriorated more than expected in May, as weakness in the domestic economy combined with escalation in the trade standoff with the U.S.
The manufacturing purchasing managers' index (PMI) dropped to 49.4, according to data released by the National Bureau of Statistics on Friday. That's worse than the 49.9 forecast in a Bloomberg survey of economists. The non-manufacturing gauge remained steady to 54.3. A reading below 50 signals contraction.
The outlook worsened across all enterprise size categories, though by the most among small companies. The index there slumped to 47.8 from 49.8.
Source : Bloomberg