A Chinese factory gauge rose last month, suggesting the government’s monetary easing and relaxation of fiscal rules have helped cushion the economy.
The official manufacturing Purchasing Managers’ Index was at 50.2 in May, according to the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. That compared with the 50.3 median estimate of economists surveyed by Bloomberg News. Numbers above 50 signal expansion.
The economy has slowed below the government’s 7 percent target rate in recent months, according to Bloomberg’s monthly growth tracker. In response, policy makers have relaxed financing rules for local governments and cut benchmark interest rates and banks’ reserve requirements.
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