Caixin: Factories Struggling as Caixin PMI Hits 49.2
Weighing on the headline index was a fresh decline for total new orders received by Chinese manufacturers in May. New export orders fell between April and May at the quickest pace in three months.
Manufacturers are continuing to shed workers, with the rate of reduction remaining close to the February figure, which was the highest since the 2008 global financial crisis.
Weak demand for manufactured goods underpinned reductions in purchasing activity and inventory holdings in May. Inflationary pressure appeared to cool slightly, however, with input costs and output prices both rising but more slowly compared to April's activity.