China Factory Gauge Holds Up as Global Economic Outlook Improves

China’s official manufacturing gauge held up in May, buoyed by an improving global outlook.

While some early indicators for May suggested a slowdown in growth is taking hold, the PMI data signal continuing momentum that gives policy makers more room to rein in financial risks. While economists forecast growth will meet or exceed the government’s target of at least 6.5 percent this year, projections also point to a continued slowdown after the first quarter’s surprise acceleration to a 6.9 percent pace.