China’s factory activity slows in May

Associated Press Associated Press

China has reported that its manufacturing activity has slowed in May.

An official survey released by the National Bureau of Statistics said Sunday that the manufacturing purchasing managers index moderated to 50 from 50.3 in April.

A PMI reading above 50 indicates expansion, and below 50 reflects contraction.

Economists say China has been relatively protected from the fallout of the three-month old Iran war, given its ample oil reserves and diversified sources for energy.

Exports have been resilient, buoyed by technology-related shipments driven by the artificial intelligence boom.

However, some analysts are cautioning that high oil prices could still dent China's economy later in the year.

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