CHINA’S factories continued to contract but at a slower pace in May as COVID-19 curbs in major manufacturing hubs gradually eased. The official manufacturing purchasing managers’ index (PMI) rose to 49.6 in May from 47.4 in April, the National Bureau of Statistics (NBS) said yesterday. While the PMI hit a three-month high, it remained below the 50-point mark that separates contraction from growth for the third straight month. “It shows the impact of COVID-19 outbreaks in May have not fully ended, leaving the economic outlook grim since the second quarter in 2020,” said Pang Ming, chief economist at Huaxing Securities. The non-manufacturing gauge, which measures activity in the construction and services sectors, increased to 47.8 from April’s 41.9, above the consensus forecast of 45.5. The new orders subindex rose to 48.2 from 42.6. “This showed manufacturing production and demand have recovered to varying degrees, but the recovery momentum needs to be strengthened,” said Zhao Qinghe, senior statistician at the NBS, in a statement accompanying the data. COVID outbreaks, along with international factors, “have had a great impact on economic operation,” said Zhao. Among the 21 sectors surveyed, industries including retail, railway and air transportation were in the expansion territory, Zhao said. (SD-Agencies) | 