China factory activity shrinks for 3rd month: flash PMI

Beijing

CHINESE factory activity contracted for the third month in May and output shrank at the fastest rate in just over a year, a private survey showed, indicating persistent weakness in the world's second-largest economy that requires increased policy support.

The poor reading, which followed a raft of downbeat April data, reinforced analysts' views that the government has to take bolder steps to combat a protracted slowdown, as growth threatens to drop below 7 per cent for the first time since the global financial crisis.