Latest news with #PinpointAssetManagement
Time of India
3 days ago
- Business
- Time of India
China manufacturing shrinks in May despite trade war truce
China's manufacturing activity shrank in May for the second month running, official data showed Saturday, despite Beijing reaching a temporary ceasefire in a blistering trade war with the United States. Beijing and Washington agreed this month to pause staggeringly high tariffs, although US President Donald Trump on Friday accused China of breaching the de-escalation deal. While the two sides reached a temporary truce in mid-May, China recorded a contraction in factory output for the month. The Purchasing Managers' Index -- a key measure of industrial output -- came in at 49.5, according to the National Bureau of Statistics (NBS). The reading was up from April's 49 but fell short of the 50-point mark that separates growth and contraction. China's overall economic output in May "continued to expand", NBS statistician Zhao Qinghe said in a statement. According to some "US-related enterprises", foreign trade orders "restarted at an accelerated pace, and import and export conditions improved", Zhao added. The non-manufacturing PMI, which measures activity in the services sector, came in at 50.3, down from April's 50.4. Chinese leaders are aiming for economic growth this year of five percent, a goal considered ambitious by many economists as the country battles weak domestic consumption. Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said "economic momentum is stable" although companies are operating in a challenging environment. "Firms in China and the US with exposure to international trade have to run their business under persistently high uncertainty," he wrote in a note. Although Beijing and Washington agreed this month to pause steep levies for 90 days, the two sides already appeared deadlocked in negotiations. Trump argued Friday that Beijing had "totally violated" the bilateral deal, without providing details. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Sun
3 days ago
- Business
- The Sun
China's manufacturing activity contracts amid trade tension
CHINA'S manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States. The official purchasing managers' index (PMI) improved slightly to 49.5 in May from 49.0 in April but stayed below the 50-mark separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll. On Friday, U.S. President Donald Trump accused China of violating a two-way deal to roll back tariffs and unveiled a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. 'Recent developments between China and the United States suggest bilateral relations are not improving,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'Firms in China and the United States with exposure to international trade have to run their business under persistently high uncertainty. It will weigh on the growth outlook in both countries.' The new orders sub-index rose to 49.8 in May from 49.2 in April, while the new export orders sub-index rose to 47.5 from 44.7. Some firms reported a noticeable rebound in trade with the United States, with improvements in both imports and exports, said senior NBS statistician Zhao Qinghe. The non-manufacturing PMI, which includes services and construction, fell to 50.3 from 50.4, staying above the 50-mark separating growth from contraction. Analysts expect Beijing to deliver more monetary and fiscal stimulus over the coming months to underpin growth and insulate the economy from the tariffs. Interest rate cuts and a major liquidity injection were among easing steps unveiled by the central bank this month. Beijing and Washington have agreed to a 90-day pause during which both would cut import tariffs, raising hopes of easing tension, but investors worry negotiations will be slow amid persistent global economic risks. Trump's decision to single out China in his global trade war has stirred major worries about an economy that has been reliant on an export-led recovery to drive momentum in the face of weak domestic demand and deflationary pressures. On Monday, rating agency Moody's maintained its negative outlook on China, citing unease over tensions with major trade partners could have a lasting impact on its credit profile. But it acknowledged that government policy had tackled its previous concerns about the health of state-owned firms and local government debt that prompted a downgrade in late 2023. China's economy expanded faster than expected in the first quarter, and the government has maintained a growth target of about 5% this year, but analysts fear U.S. tariffs could drive momentum sharply lower. Exports beat forecasts in April, buoyed by demand for materials from overseas manufacturers who rushed out goods to make the most of President Trump's 90-day tariff pause.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
China's manufacturing activity shrinks despite trade war truce
China's purchasing managers' index, a key measure of industrial output, came in at 49.5. (AFP pic) BEIJING : China's manufacturing activity shrank in May for the second month running, official data showed today, despite Beijing reaching a temporary ceasefire in a blistering trade war with the US. Beijing and Washington agreed this month to pause staggeringly high tariffs, although US President Donald Trump today accused China of breaching the de-escalation deal. While the two sides reached a temporary truce in mid-May, China recorded a contraction in factory output for the month. The purchasing managers' index – a key measure of industrial output – came in at 49.5, according to the national bureau of statistics (NBS). The reading was up from April's 49 but fell short of the 50-point mark that separates growth and contraction. China's overall economic output in May 'continued to expand', NBS statistician Zhao Qinghe said in a statement. According to some 'US-related enterprises', foreign trade orders 'restarted at an accelerated pace, and import and export conditions improved', Zhao added. The non-manufacturing PMI, which measures activity in the services sector, came in at 50.3, down from April's 50.4. Chinese leaders are aiming for economic growth this year of 5%, a goal considered ambitious by many economists as the country battles weak domestic consumption. Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said 'economic momentum is stable' although companies are operating in a challenging environment. 'Firms in China and the US with exposure to international trade have to run their business under persistently high uncertainty,' he wrote in a note. Although Beijing and Washington agreed this month to pause steep levies for 90 days, the two sides already appeared deadlocked in negotiations. Trump argued today that Beijing had 'totally violated' the bilateral deal, without providing details.
Malay Mail
3 days ago
- Business
- Malay Mail
China's manufacturing contracts again in May despite trade war truce, as Trump accuses Beijing of deal violation
BEIJING, May 31 — China's manufacturing activity shrank in May for the second month running, official data showed today, despite Beijing reaching a temporary ceasefire in a blistering trade war with the United States. Beijing and Washington agreed this month to pause staggeringly high tariffs, although US President Donald Trump yesterday accused China of breaching the de-escalation deal. While the two sides reached a temporary truce in mid-May, China recorded a contraction in factory output for the month. The Purchasing Managers' Index — a key measure of industrial output — came in at 49.5, according to the National Bureau of Statistics (NBS). The reading was up from April's 49 but fell short of the 50-point mark that separates growth and contraction. China's overall economic output in May 'continued to expand', NBS statistician Zhao Qinghe said in a statement. According to some 'US-related enterprises', foreign trade orders 'restarted at an accelerated pace, and import and export conditions improved', Zhao added. The non-manufacturing PMI, which measures activity in the services sector, came in at 50.3, down from April's 50.4. Chinese leaders are aiming for economic growth this year of five per cent, a goal considered ambitious by many economists as the country battles weak domestic consumption. Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said 'economic momentum is stable' although companies are operating in a challenging environment. 'Firms in China and the US with exposure to international trade have to run their business under persistently high uncertainty,' he wrote in a note. Although Beijing and Washington agreed this month to pause steep levies for 90 days, the two sides already appeared deadlocked in negotiations. Trump argued yesterday that Beijing had 'totally violated' the bilateral deal, without providing details. — AFP
South China Morning Post
3 days ago
- Business
- South China Morning Post
China's factory activity contracts for second month in row as US trade tensions persist
China's manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States. The official purchasing managers' index (PMI) improved slightly to 49.5 in May from 49.0 in April but stayed below the benchmark of 50 separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll. On Friday, US President Donald Trump accused China of violating a two-way deal to roll back tariffs and unveiled a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. 'Recent developments between China and the United States suggest bilateral relations are not improving,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'Firms in China and the United States with exposure to international trade have to run their business under persistently high uncertainty. It will weigh on the growth outlook in both countries.' The new orders sub-index rose to 49.8 in May from 49.2 in April, while the new export orders sub-index rose to 47.5 from 44.7. Some firms reported a noticeable rebound in trade with the United States, with improvements in both imports and exports, according to Zhao Qinghe, senior statistician at the National Bureau of Statistics.
