China’s manufacturing activity slowed in May, new data showed, in the latest sign of strain for the world’s second-largest economy amid the Iran war.
Beijing has been relatively shielded from the worst effects of the conflict because of its crude stockpile and diverse energy mix, but the lagging factory data showed the impact of rising oil prices.
The recent slowdown is raising hopes for broad stimulus measures, but economists don’t expect policymakers to intervene because exports have remained strong: The global data center buildout has helped push shipments above last year’s record levels.
The consumer economy, though, is flagging; pork prices have plunged amid a glut and languid spending, in a microcosm of muted demand in the country.