Manufacturing activity across China eased slightly lower during May as companies faced challenges related to bottlenecks in supply chains and rising raw material costs. As per data released by the NBS, China’s official manufacturing PMI dipped to 51 in May from 51.in April, coming in weaker tha economists’ forecast which was for an unchanged reading.

Manufacturing firms in the nation have been struggling with rising input costs, especially a surge in the price of commodities, which has led to China looking at ways to cap prices. The sub-index measuring raw materials costs soared from 66.9 in April to 72.8 during May.

On a positive note, however, the services sector in China posted a faster pace of growth through the month of May, supported by surging domestic demand levels. China’s official non-manufacturing PMI rose from 54.9 in April to 55.2 during May, remaining in expansion for the 15th consecutive month.

China’s economy has been soaring ever since it emerged from the coronavirus crisis, buoyed by a recovery in both domestic as well as external demand. However, with economic figures revealing a slight decline in recent weeks, government officials have cautioned that recovery remains uncertain and uneven across the world’s second largest economy.