China’s factory activity contracts in May, but there are signs of improvement

China’s factory activity contracted in May although the decline slowed from April as the country reached a deal with the U.S. to slash President Trump’s sky-high tariffs.

China’s purchasing managers index rose from 49.0 in April to 49.5 in May, the National Bureau of Statistics said. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. Meanwhile, the manufacturing index showed growth in the sector, although the index measuring new orders remained under 50 despite some improvement.

National Bureau of Statistics senior statistician Zhao Qinghe said some companies with U.S. business reported accelerated resumption of foreign trade orders, and there was an improvement in import and export conditions.

The U.S.-China deal, reached earlier this month, cuts Trump’s tariffs from 145% to 30% for 90 days, creating time for negotiators from both sides to reach a more substantive agreement. China also reduced its taxes on U.S. goods from 125% to 10%.

Spike in steel tariffs could imperil Trump promise of lower grocery prices

President Trump’s doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement of a staggering 50% levy on those imports has stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases.

But those metals are so ubiquitous in packaging, they’re likely to pack a punch across consumer products from soup to nuts. Among those opposing the hiked tariffs is the Can Manufacturers Institute. It says American consumers will pay for those taxes in increased costs of canned goods.

— Boston Herald Wire Services