China's factory activity unexpectedly contracts in May


The production line at Volkswagen Anhui Automotive’s factory in Hefei. — Bloomberg

BEIJING: China's manufacturing activity unexpectedly fell in May, an official factory survey showed on Friday, keeping alive calls for fresh stimulus as a protracted property crisis continues to weigh on businesses, consumers and investors.

The official purchasing managers' index (PMI) fell to 49.5 in May from 50.4 in April, below the 50-mark separating growth from contraction and missing a median forecast of 50.4 in a Reuters poll.

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