China’s factory activity falls at slower pace

A worker welds a liquefied natural gas (LNG) tank at a factory in Nantong, in China's eastern Jiangsu province on May 20, 2022. - AFP

BEIJING: China’s factory activity contracted at a slower pace in May as Covid-19 curbs in major manufacturing hubs were relaxed, but movement controls still depressed domestic demand, restrained production and weighed on the economy in the second quarter.

The official manufacturing purchasing managers’ index (PMI) rose to 49.6 in May from 47.4 in April, the National Bureau of Statistics (NBS) said, marking the highest in three months but also the third consecutive contraction.