The Chinese Markit/Caixin manufacturing PMI fell to 49.2 in May from 49.4 in April. The decrease was driven by declines in output and new orders. Employment continued to decline.

"Overall, China's economy has not been able to sustain the recovery it had in the first quarter and is in the process of bottoming out," Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, said.

"The government still needs to make full use of proactive fiscal policy measures accompanied by a prudent monetary policy to prevent the economy from slowing further," he added.

The Chinese manufacturing PMI remained unchanged at 50.1 in May, according to the Chinese government. Analysts had expected the index to decrease to 50.0.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

The production sub-index increased to 52.3 in May from 52.2 in April, the new orders sub-index was down to 50.7 from 51, and the new exports sub-index fell to 50 from 50.1, while the employment sub-index increased to 48.2 from 47.8.

The services PMI decreased to 53.1 in May from 53.5 in April.

(raw materials / closing price /% change)

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