China39;s factory activity contracts in May
Services activity growth slows in May
Property downturn continues to weigh on domestic demand
May data could be blip ahead of stimulus taking effect, analysts

BEIJING, May 31 Reuters China39;s manufacturing activity unexpectedly fell in May, keeping alive calls for fresh stimulus as a protracted property crisis in the world39;s secondlargest economy continues to weigh on business, consumer and investor confidence.

The official manufacturing purchasing managers39; index PMI dropped to 49.5 in May from 50.4 in April, the National Bureau of Statistics NBS said on Friday, below the 50mark separating growth from contraction and missing analysts39; forecast of 50.4.

The disappointing number adds to a series of recent indicators showing the 18.6 trillion economy is struggling to get back on its feet, eroding earlier optimism seen after betterthanexpected output and trade data.

I think the data particularly reflects soft domestic demand, the housing sector continued to worsen and retail sales were not strong, said Xu Tianchen, senior economist at the Economist Intelligence Unit.

I think the data particularly reflects soft domestic demand, the housing sector continued to worsen and retail sales were not strong, said Xu Tianchen, senior economist at the Economist Intelligence Unit.

The International Monetary Fund on Wednesday revised up its China growth forecast by 0.4 percentage points to 5 for 2024 and 4.5 in 2025, but…