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China's Manufacturing in Worst Slump in Over Two Years Despite Tariff Truce
The Straits Times
|June 04, 2025
China's manufacturing sector had its worst slump since September 2022, according to a private survey, as higher US tariffs took a toll on smaller exporters despite a truce in the trade war with the United States.
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BEIJING -
The Caixin manufacturing purchasing managers' index (PMI) fell to 48.3 in May from 50.4 in April, according to a statement released by Caixin and S&P Global on June 3, well below the 50-point mark separating expansion from contraction.
The figure is below every estimate in a Bloomberg survey of analysts, whose median was 50.7.
"Manufacturing supply and demand declined, dragged by overseas demand," senior economist Wang Zhe of the Caixin Insight Group said. "The downward pressure on the economy has significantly intensified compared with preceding periods."
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