China's industrial activity loses steam and reaches break-even point in May
Industrial activity in China showed signs of slowing down during the month of May. According to the latest official data, the sector stood exactly on the line between growth and decline. This change is drawing attention among economists, as China is one of the world's largest industrial powers.
The Purchasing Managers' Index (PMI), which is the main indicator for measuring the health of the industry, settled at 50 points in May. This value represents a decrease of 0.3 points compared to the month of April. Although the difference seems small, it shows that the pace of production in Chinese factories has slowed down.
In economics, the 50-point value is considered the "threshold" or the fundamental dividing line. When the index is above 50, it means the industry is expanding. If the value is below 50, the sector is in contraction. By reaching exactly 50 points, China finds itself in a moment of fragile stability, without real growth.
In April, the figures were more positive and showed a more dynamic sector. However, in May, the industry lost that initial momentum. Experts indicate that although the sector has not entered negative territory, the decline suggests that companies are facing difficulties in maintaining the same level of activity as in previous months.
This data is fundamental to understanding the evolution of the global economy. As China exports products to almost every country, the health of its factories affects international trade. Analysts will now monitor June's data to see if the industry recovers or begins to shrink.