BEIJING: China’s manufacturing activity has slowed, according to a private survey of export-oriented firms, in line with an official gauge that suggests the world’s second-largest economy is losing some steam.
The RatingDog China manufacturing purchasing managers index fell to 51.8 in May from a record of 52.2 in April, according to a statement released yesterday.
That compared with the median forecast of 51.3 by economists. A reading above the 50 threshold indicates improving conditions from the previous month.
“The latest reading signalled a softer improvement in manufacturing conditions than the previous month, but remained comfortably above the long-run survey trend of 50.8 since 2004,” according to the statement.
Official figures released last Sunday showed factory activity fell to 50 from 50.3 in April, as disruptions from a five-day break added to pressures on global demand and input costs from the continuing conflict in the Middle East.
The war in Iran is taking a toll on smaller export-oriented firms and raising their input costs.
Still, tech remains a bright spot, with Goldman Sachs Group Inc and Nomura Holdings Inc estimating China’s overseas sales of semiconductors, computers and other products related to artificial intelligence accounted for about half of its export growth in April.
The economy is showing signs of faltering after a strong first quarter. Growth slowed in April, with industrial production and retail sales posting their weakest gains in years. — Bloomberg
