China’s factory growth contracts in May

 
Suzie Neuwirth

CHINA’S manufacturing sector contracted in May, reinforcing fears that growth of the world’s second largest economy is losing momentum.

The HSBC China purchasing managers’ index (PMI) fell to 49.2 from 50.4 in April, after new orders and exports fell from the previous month.

A reading above 50 indicates growth.

The decline has been attributed to a slowdown in global activity.