China’s official manufacturing purchasing managers’ index, published by the National Bureau of Statistics over the weekend, showed activity falling to 50.0 in May, down from 50.3 in April. This 50.0 level represents the threshold between expansion and contraction and marked a 3-month low. There was a broad-based decline in the sub-indices. But we saw the most notable drops in new orders, which fell back into contraction at 49.9 from 50.6, and new export orders, which fell to 48.6 from 50.3. The Raw Material Purchasing Price Index (60.5) and Ex-factory price index (51.9%) also saw fairly steep declines in May. Still, ... (full story)