Official manufacturing PMI for May

China's manufacturing activity fell more than expected in May in a fierce trade war with the United States, Chinese government data showed on Friday.

The official index of Purchasing Managers in Manufacturing (PMI) for May was 49.4, which is lower than the 49.9 economists polled by Reuters. The April reading was 50.1.

PMI values ​​above 50 indicate expansion, while those below this signal contraction.

The official non-manufacturing PMI for May was 54.3 – unchanged from April.

The PMI is a survey of companies on the operating environment. These data provide a first glimpse of what is happening in an economy, as they are usually among the top economic indicators published each month.

For China, the PMI is one of the economic indicators that investors around the world are watching closely for signs of problems due to domestic headwinds and the ongoing trade dispute between the United States and China.

"The official PMI indices suggest that growth remains under pressure, which corresponds to our view that there are still risks for the activity in the short term," said Julian Evans-Pritchard, senior economist in China. at Capital Economics, a consulting firm.

Evans-Pritchard wrote on Friday in a note that the decline in the number of manufacturing PMIs was mainly due to weak new orders – export orders dropped sharply – suggesting that the latest US tariff hike on Chinese imports could undermine foreign demand.

The official PMI survey usually polls a large portion of large companies and public companies. Another survey, the Caixin indicator, shows a greater diversity of small and medium-sized enterprises.

Caixin's manufacturing PMI is expected by June 3rd.

– Yen Nee Lee and Reuters from CNBC contributed to this report.