China’s slowing factory sector may have barely grown in May amid lackluster local and foreign demand, a Reuters poll showed, adding to fears that the world’s second-largest economy is losing steam.
The median forecast of 10 economists polled by Reuters showed China’s official Purchasing Managers’ Index (PMI) likely retreated to 50.1 in May from April’s 50.6 to hover a whisker above the 50-point threshold.
A reading above 50 indicates expanding activity while a reading below that level points to a contraction. The report will be released on Saturday morning.
Evidence has mounted in recent weeks that the economy is fast losing growth momentum as sluggish domestic demand fail to make up for lethargic export sales, dampening hopes for a China economic revival this year.
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