China's factory activity flatlined in May following two months of expansion, official data showed Sunday, as weaker demand and soaring energy costs due to the war in the Middle East weighed on growth and output.
The manufacturing purchasing manager's index (PMI) – a key measure of industrial activity – was 50.0 in May, according to the National Bureau of Statistics (NBS).
The 50.0 mark separates expansion from contraction. Economists surveyed by Bloomberg had predicted a reading of 50.0 as well.
The figure slipped from 50.3 in April and 50.4 in March.
The new orders sub-index dropped to 49.9 from 50.6 in April, while the sub-index on production edged down to 51.2 from April’s 51.5. The sub-index for raw material stockpiles fell to 48.6 from 49.3 in April.
