China’s factory activity contracted at a slower rate in May after a reprieve in the tariff war with the US unclogged trade flows, even as weak domestic demand continues to weigh on the economy. The official manufacturing purchasing managers’ index was 49.

BEIJING (Reuters) - China's factory activity likely contracted for a second month in May, a Reuters poll showed on Friday, suggesting trade tensions with major export markets are weighing on manufacturers' minds as the world's top two economies seek a way out of a tariff war.

BEIJING — China's manufacturing activity contracted for a second month in May, an official survey showed on Saturday, raising expectations for more stimulus to support the economy amid a protracted trade war with the United States.