A less rosy assessment of the Chinese manufacturing sector in May was suggested by the closely-watched purchasing managers' index compiled by HSBC, which indicated contraction despite the official reading saying it had expanded.
The final manufacturing PMI reading compiled by HSBC and Markit was 49.2, in line with expectations and a slight upwards revision from the 49.1 estimate in the "flash" reading. The reading was 48.9 in April. Any level above 50 reflects growth
Annabel Fiddes, economist at Markit, noted the output component recorded its first contraction of output in 2015, with weak demand from overseas playing a key role.
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