China’s factories struggled to expand in May despite recent interest rate cuts and other policy stimulus, a Reuters poll showed, suggesting the government may have to do more to halt a protracted slowdown in the economy. The official manufacturing Purchasing Managers’ Index, or PMI, is forecast to inch up to 50.2 from April’s 50.1, according to the median forecast of 14 economists in the poll. A reading above 50 points indicates an expansion in activity while one below that shows a contraction on a monthly basis. “Although the government has unveiled a series of policy stimulus measures, the effect has yet to show up,” said Nie Wen, an economist at Hwabao Trust in Shanghai. The flash HSBC/Markit PMI released last week showed factory activity contracted for a third month in May and output shrank at the fastest rate in just over a year, indicating persistent weakness in the […]