A private gauge of China’s manufacturing activity tumbled into contraction in May, as tariffs continue to weigh despite a trade truce with the U.S.

China's factory activity contracted in May although the decline slowed from April as the country reached a deal with the U.S. to slash President Donald Trump's sky-high tariffs.

China's factory activity likely contracted for a second month in May, a Reuters poll showed on Friday, suggesting trade tensions with major export markets are weighing on manufacturers' minds as the world's top two economies seek a way out of a tariff war.