A private gauge of China’s manufacturing activity tumbled into contraction in May, touching the lowest level since September 2022 as tariffs continue to weigh despite a trade truce with the U.S.The Caixin manufacturing purchasing managers index slid to 48.

Chinas factory activity contracted in May for the first time in eight months, signaling growing pressure from U.S. tariffs and weakening global demand. The Caixin/SP Global manufacturing PMI fell to 48.

Two weeks after a breakthrough trade truce, US Treasury Secretary Scott Bessent said Thursday that negotiations with China are "a bit stalled," signalling fresh uncertainty in the talks