China's May factory activity unexpectedly shrinks as tariffs dent sentiment — worst drop since 2022

KEY POINTS

• China’s manufacturing activity in May shrank at the fastest pace since September 2022, a private survey showed.

• Official PMI released over the weekend showed China’s manufacturing activity contracted for a second month in May.

• The divergence between the official and Caixin PMI readings may be partly owed to the surveys’ timing differences, said economists at Goldman Sachs.