“Chinese production activity in May fell at the fastest pace since September 2022.” – writes CNBC, pointing to the Tuesday publication of the Chinese equivalent of the PMI index for industry. A sharp decrease in new export orders is caught in the eye, which emphasizes the impact of American duties.
The purchasing managers index in the Caixin/S&P Global production sector was 48.3 points. It's a big, negative surprise because The average forecasts of economists suggested a result of 50.6 points. It's big recourse against 50.4 points recorded in April.
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Reuters notes that The index for the first time since September last year has fallen below 50 pointsi.e. the level separating good and bad economic situation in industry.
Trump's duties hit China
Detailed statistics show that the decrease in foreign demand has accelerated in May, and the indicator of new export orders fell to the lowest level since July 2023. The total number of new orders, which is an indicator of general demand, also fell for the first time in eight months.
For this “The situation on the labor market remained gloomy, and employment has dropped the second month in a row, at the fastest pace since January“The study also showed that the supplies of ready -made products in factories have increased for the first time in four months due to a decrease in sales and delays in foreign shipments.
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“Uncertainty surrounded by foreign trade increased, intensifying the economic difficulties in the country” – said Wang Zhe, a senior economist at Caixin Insight Group, quoted by Reuters. He added that the main macroeconomic indicators showed a clear weakening at the beginning of the second quarter.
US President Donald Trump suspended for 90 days 145 % duties on Chinese imports, most of which entered into force in April. According to Think Tank Peterson Institute for International Economics, American duties on goods imported from China have currently dropped to 51.1 percent, while Chinese imports for imports from the USA are 32.6 percent.
