China’s manufacturing activity shrank in May for the second month running, official data showed Saturday, despite Beijing reaching a temporary ceasefire in a blistering trade war with the United States.

China’s factory activity contracted at a slower rate in May after a reprieve in the tariff war with the US unclogged trade flows, even as weak domestic demand continues to weigh on the economy.

China's manufacturing activity contracted for a second month in May, an official survey showed on Saturday, raising expectations for more stimulus to support the economy amid a protracted trade war with the United States.