# China's factory activity falls faster than expected as recovery stumbles | Reuters

> China's official manufacturing activity shrank faster than expected in May as weakening demand deepened. The weak readings pushed Asian markets lower, with the yuan, Australian dollar and New Zealand dollar all falling sharply.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: report · region China · magnitude medium
- Page: https://feedsoft.ai/events/36174-china-s-factory-activity-falls-faster-than-expected-as-recovery-stumbles-reuters
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Softer Chinese industrial demand points to lower import needs for soybeans and feed inputs, which weighs on feed commodity prices. A weaker yuan also makes dollar-priced imports more expensive for Chinese buyers, which can further reduce purchasing.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2023-05-16 | [China's April data show economic recovery losing steam, testing policymakers \| Reuters](https://feedsoft.ai/events/36179-china-s-april-data-show-economic-recovery-losing-steam-testing-policymakers.md) | -4.2% | -0.1% |
| SOY | 2024-02-08 | [February WASDE: U.S. supplies higher than traders expected](https://feedsoft.ai/events/31628-february-wasde-u-s-supplies-higher-than-traders-expected.md) | -1.6% | -2.7% |
| SOY | 2023-07-12 | [Wheat, Soybean Carryover Larger Than Expected \| Red River Farm Network](https://feedsoft.ai/events/34983-wheat-soybean-carryover-larger-than-expected-red-river-farm-network.md) | -1.9% | -6.0% |
| SOY | 2021-12-09 | [PF Report Reaction: USDA delivers a yawner, as expected - Pro Farmer](https://feedsoft.ai/events/43526-pf-report-reaction-usda-delivers-a-yawner-as-expected-pro-farmer.md) | +0.1% | +9.2% |
| SOY | 2025-02-28 | [Prices face pressure as larger U.S. crops expected this year \| The Western Producer](https://feedsoft.ai/events/26080-prices-face-pressure-as-larger-u-s-crops-expected-this-year-the-western-producer.md) | -0.9% | -0.6% |
| USDCNY | 2020-02-04 | [Dollar gains on upbeat manufacturing data, virus threats cap yuan \| The Business Standard](https://feedsoft.ai/events/5140-dollar-gains-on-upbeat-manufacturing-data-virus-threats-cap-yuan-the-business.md) | -0.6% | -0.9% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/chinas-factory-activity-falls-faster-than-expected-weak-demand-pmi-2023-05-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.