China's factory activity falls at slower pace as COVID curbs ease
China's factory activity contracted at a slower pace in May as COVID-19 curbs in major manufacturing hubs were relaxed, but movement controls still depressed domestic demand, restrained production and weighed on the economy in the second quarter.
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BEIJING (Reuters) - China’s services activity shrank less sharply in May, an official survey showed on Tuesday, as COVID-19 restrictions in some cities were relaxed.
The official non-manufacturing Purchasing Managers’ Index (PMI) rose to 47.8 in May, from 41.9 in April, data from the National Bureau of Statistics showed.
A reading above the 50-point mark indicates expansion in activity while a reading below indicates contraction.
Even with an easing in COVID-19 curbs across China, consumers likely avoided shopping and dining out due to fears of contracting COVID-19 and potentially being quarantined.
China’s official composite PMI, which includes both manufacturing and services activity, stood at 48.4, compared with 42.7 in April.
Reporting by Ella Cao, Ellen Zhang and Ryan Woo; Editing by Sam Holmes
