BEIJING: China’s factory activity growth slowed slightly in May as raw materials costs grew at heir fastest pace in over a decade, weighing on the output of small and export-oriented firms.
The official manufacturing Purchasing Managers’ Index (PMI) inched lower to 51.0 in May, against analyst expectations that it would remain unchanged from April at 51.1, data from the National Bureau of Statistics (NBS) showed on Monday.
The official PMI has stood above the 50-point mark that separates growth from contraction for over a year.
While the Chinese economy has largely shaken off the gloom from the Covid-19 pandemic, officials warn the foundations for the recovery are not yet secure amid problems like higher raw material costs and the pandemic situation overseas.
Iris Pang, chief economist for Greater China at ING, said in a note that “external demand will likely remain flat” as economic recoveries in the United States and parts of Europe are likely to be “offset by increasing Covid cases in Asean, which is the biggest trade partner of China.”
— Reuters
Oman Observer is now on the WhatsApp channel. Click here
