Chinese industry is suffering because of the tariff war with the United States. PMI Indicator (Purchasing Managers' Index, business activity index — EADaily), which measures the economic situation in Chinese industry, turned out to be much worse than expected. About it today, June 5, informs the Polish Gazeta.Pl .
The PMI index calculated by Caixin and S&P Global for Chinese manufacturing fell from 50.4 points in April to 48.3 points in May, although it was assumed that it would be 50.6 points. The boundary separating growth and recession is 50 points. There has not been such a low level since September 2024.
"The decline in external demand accelerated in May, and the index of new export orders fell to the lowest level since July 2023," Caixin analysts said.
The tariff war with the United States was cited as one of the main reasons. Wang Zhe, senior economist at Caixin Insight Group, is confident that uncertainty in foreign trade has increased, which has exacerbated domestic economic difficulties.
"Key macroeconomic indicators showed a clear weakening at the beginning of the second quarter," he said.
Although both countries tried to mitigate the effects of the trade war by reducing tariffs, this was not enough.
"PMI business activity indices show that the cessation of trade between the US and China's last month was not enough to prevent a broader loss of economic momentum in May. Given the high tariffs and continuing structural obstacles, we expect growth to slow to just 3.5% this year," added Zichun Huang, economist at Capital Economics.
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