China's manufacturing activity decreased more quickly than anticipated in May, due to feeble demand, putting pressure on officials to support a shaky economic recovery and lowering Asian financial markets.
The National Bureau of Statistics (NBS) said on Wednesday that the official manufacturing purchasing managers' index (PMI) dropped to a five-month low of 48.8, down from 49.2 in April and below the 50-point threshold that distinguishes expansion from contraction.
The PMI also fell short of expectations for a rise to 49.4.
In May, the expansion of the service sector was slower than it had been for the previous four months, with the official non-manufacturing PMI dropping from 56.4 to 54.5. The yuan, as well as the Australian and New Zealand dollars, fell substantially, and regional stocks fell as a result of the data, sending Asian markets into the red.