China’s PMI to Show Signs of Contraction Over Trade War Tensions

Arslan Butt•Wednesday, May 29, 2019•1 min read

Factory activity in China is expected to show an impact of the ongoing trade war, with economists expecting the official PMI to shrink to 49.9 in May from 50.1 in April. This figure is expected to come in below the 50-threshold, indicating contraction.

In April, a slew of economic data pointed to signs of weakening in the economy, including industrial output, exports and retail sales. In the face of the recent tariff hikes announced by the US, these figures are only expected to get worse.

US President Trump had increased tariffs on $200 billion worth of Chinese goods and has threatened additional tariffs of up to 25% on another $300 billion of goods. Global economic growth, trade and business investment have already been impacted on account of the tariff war between the two world leaders.

Meanwhile, the Caixin manufacturing PMI figure is also expected to show a stall in growth for May at 50.o, down from 50.2 in April.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.