Sharjah24 – AFP: Factory activity in China nudged down slightly in May on slower demand and higher raw material prices, while the services industry boomed over the Labour Day break, official data showed Monday.
The Purchasing Managers' Index (PMI), a key gauge of China's manufacturing activity, was 51.0 -- slightly down from 51.1 in April but above the mark separating growth from contraction, said the National Bureau of Statistics.
But there are risks ahead, analysts warned, including shortages of parts -- especially semiconductors -- and rising commodity prices.
Although factory production has been "rising steadily", with overall activity exceeding the same periods in the past two years, demand growth has slowed, said NBS senior statistician Zhao Qinghe.
In May, China's non-manufacturing PMI rose to 55.2, with a Labour Day holiday consumer boom supported by long-distance domestic travel and accommodation.
China's economy has largely rebounded from the coronavirus lockdowns last year, although the consumer recovery has been lagging behind that of industrial activity.
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