China’s manufacturing activity shrunk in May for a second consecutive month, according to an official survey published on Saturday, fueling expectations for more measures to stimulate the economy in the midst of a prolonged trade war with the United States.

The official procurement index improved slightly to 49.5 points in May from 49.0 in April, but remained below the 50 -point limit that separates growth from shrinkage, according to the Reuters.

Friday, US President Donald Trump He accused China of violating a two -way deal to lift duties and revealed the doubling of global steel and aluminum duties at 50%, shaking international trade once again.

“Recent developments between China and the United States suggest that bilateral relations do not improve”, said the Zioi Zhanghead of economist at Pinpoint Asset Management.

“Companies in China and the United States with an exposure to international trade are constantly operating high uncertainty. This will affect growth prospects in both countries. “

The orders of orders rose to 49.8 points in May from 49.2 points in April, while the exporting proponent rose to 47.5 points from 44.7 points.

Some companies have reported a remarkable recovery with the United States, with improvements to both imports and exports, NBS senior statistician statistics said, Zao.

The non -manufacturing index, which includes services and constructions, was reduced to 50.3 points from 50.4, remaining above the 50 -point limit that separates growth from shrinkage.

Analysts expect that Beijing will apply more monetary and budgetary measures stimulating in the coming months to support growth and protect the economy from duties.

Interest rates and a significant “injection” of liquidity were among the relaxation measures announced by the Central Bank this month.

Beijing and Washington agreed to a 90 -day pause During which both will reduce import duties, increasing hopes of alleviating the tension, but investors are worried that the negotiations will be slow amid persistent global financial risks.

His decision Trump To distinguish China in its world trade war has raised great concerns about an export -based economy to boost its economy in the face of weak domestic demand and deflationary pressure.

On Monday, the evaluation house Moody’s He maintained his negative prospects for China, citing concern about tensions with major commercial partners who could have a constant impact on her credit profile.

However, he acknowledged that government policy had faced its previous concerns about the health of state -owned businesses and the debt of local government, which led to a downgrade in late 2023.

China’s economy has been faster than expected in the first quarter and the government has maintained a growth goal of about 5% this year, but analysts are afraid that US duties could lead the economy to a sharp decline.

Exports exceeded forecasts in April, enhanced by demand for materials from foreign manufacturers who rushed to export products to make the most of the 90 -day cessation of the president’s duties Trump.