China's fresh PMI slide not a cause for worry?

Its private sector index slid to 48.7% from 49.1% in April but government easing is softening the blow, says BBVA.

The Purchasing Manager's Index declined as new orders dried up, keeping it below the expansion threshold as the private sector continues to hold a less-than-bullish outlook on China growth.

Here's more from BBVA:

China's flash estimate of the private sector PMI (Markit) in May, released today, registered a slight downturn to 48.7% from 49.1% in April, mainly due to weakness in new orders. This outturn suggests that sentiment on China's growth momentum remains weak, following the weaker-than-expected outturns of economic activity indicators in April. Encouragingly, the Chinese government is stepping up its efforts to stabilize growth momentum through supportive policies, including monetary easing, and in our view remains on a soft-landing path.