world-economy

China's Factory Activity Loses Momentum as Global Demand Softens

China's manufacturing sector continued to expand in May but at a slower pace than April, according to private surveys of export-focused producers. The reading aligns with official data pointing to cooling activity in the world's second-largest economy. May holiday disruptions compounded existing headwinds, including persistent global demand weakness and elevated input costs from Middle East tensions. Despite the manufacturing slowdown, industrial profits surged 24.7 percent in April—the fastest gain in more than two years—driven by stronger export orders and gains in upstream sectors. The mixed signals underscore the economy's vulnerability to external shocks as geopolitical risks continue pressuring commodity prices.