The newest findings showed that China’s factory output contracted in May, strengthening concerns over world’s second economy growth. The contraction, which was driven by anemic export orders and weak domestic demand, indicated that China was losing its stem in the second quarter of the year. But what is interesting is the fact that HSBC data showed a more pessimistic picture of the China’s economy as official figures indicated that manufacturing rose in May.
Apparently, signs of the China’s economic recovery are weakening as the latest flash manufacturing PMI showed that factory activity slumped significantly in May. Data released by HSBC Holdings Plc indicated that the economic growth of the world’s second economy was visibly slackening in the second quarter of the year. It seems that bad days are gathering over China’s manufacturing.
As it was widely expected, China’s manufacturing activity improved in March adding to signs of the much-anticipated economic recovery in the Asian dragon. Even though China witnessed an expansion in its factory output, analysts expected a bigger increase.