An independent survey of China’s manufacturers indicates the sector fell into contraction last month as sluggish demand dragged on production and output prices fell for the first time in more than a year, suggesting second-quarter growth could prove markedly softer after a strong showing in the first three months of 2017.
The Caixin-Markit manufacturing purchasing managers’ index dropped to 49.6 in May, down from 50.3 in April and pushing the headline figure below the 50-point line separating growth from contraction for the first time since June 2016 – as well as further beneath the level reported by China’s official manufacturing gauge.
A median estimate from economists polled by Reuters had predicted the headline figure would only dip to 50.1.