According to Nomura analysts, with economic growth set to fall by around 15 per cent year-on-year in the second quarter in the major economies of Europe and the Americas, China’s exports appear to be about to fall.
As official data showed, Chinese factory operation expanded at a slower pace in May as the country attempts to get back on track following the coronavirus with the global economic downturn making recovery difficult for the sector.
China’s factories stirred back to life after the lifting of strict lockdown measures imposed when the deadly pathogen surfaced in the central city of Wuhan, but the spread of the virus worldwide has dragged down key foreign markets – weighing heavily on Chinese exports.
The Purchasing Managers’ Index (PMI), a key gauge of activity in China’s factories, was at 50.6 points in May, remaining above the 50-point mark separating growth from contraction each month.
But according to the National Bureau of Statistics (NBS), the figure was down marginally from 50.8 the month before, and 52 in March.