Factory activity shrank in China in May, according to data released by the National Bureau of Statistics on Friday. The official purchasing manager’s index (PMI) dropped to 49.5, following two months of expansion. (A number below 50 represents a contraction). The figure also came in below expectations, as economists forecast an expansion last month.
Zhao Qinghe, a senior statistician from the NBS, attributed the decline to “insufficient effective demand,” as well as a high base of comparison from earlier rapid expansion.
