China’s Economic Downturn Shows Signs of Easing

SINGAPORE—Economic exercise in China declined for a 3rd straight month in May, although at a slower tempo than in April, in keeping with surveys of companies and factories.

But whereas the surveys recommend the financial system is starting to climb out of a extreme downturn as Covid-19 restrictions are eased, economists are skeptical a few massive revival. Growth will stay subdued, they are saying, so long as the federal government employs a zero-tolerance approach to virus outbreaks that entails mass lockdowns and enterprise closures.