Overview

• China’s purchasing managers index climbed from 49.0 in April to 49.5 in May, narrowing the factory downturn for the second month in a row.
• The overall manufacturing index showed sector expansion even though the neworders subindex remained below the 50 cutoff for growth.
• Under the 90-day deal, U.S. duties on Chinese goods fell from 145% to 30% and China cut its tariffs on U.S. imports from 125% to 10%.
• National Bureau of Statistics senior statistician Zhao Qinghe said companies with U.S. business have accelerated the resumption of foreign trade orders.
• Uncertainty over the tariff truce’s longevity has grown after President Trump warned he may end the deal and U.S. visa revocations for Chinese students escalated tensions.