China’s National Bureau of Statistics reported the official manufacturing Purchasing Managers' Index (PMI) fell to 50.0 in May. This figure marks a decline from 50.3 in the previous month. A reading of 50.0 indicates factory activity stalled after two months of expansion. This data serves as a critical indicator for global copper demand.
Softening market demand drove the slowdown as the new orders sub-index dropped into contraction at 49.9. Foreign orders also shrank, falling to 48.6. While manufacturing output expanded at 51.2, the decline in new orders suggests headwinds for industrial metal consumption.
The non-manufacturing PMI rose slightly to 50.1. This indicates a modest expansion within the services sector.