China Manufacturing Slump Heightens Risk of ‘Downward Spiral’
- PMI survey points to deeper contraction in manufacturing
- Calls are rising for more central bank stimulus to spur growth
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China’s economic recovery weakened in May, raising fresh fears about the growth outlook and prompting calls for more central bank action to counter the downturn.
Manufacturing activity contracted at a worse pace than in April, while services expansion eased, official data showed Wednesday, suggesting the post-Covid rebound had lost momentum. Investors sold off everything from Chinese shares and the yuan to copper and iron ore.