PMI drop points to cooling

Output in world's second-biggest economy is facing downside risks

China's economic downside risks have been aggravated by slowing expansion in the manufacturing sector and weak market demand, which is reinforcing expectations of more decisive easing actions from the government.

In May, expansion of the manufacturing sector cooled to its slowest in five months, with a lower-than-expected Purchasing Managers' Index (PMI) dropping to 50.4 from April's 53.3, according to data released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing on Friday.