CHINA's factory activity in May shrank for the first time in eight months, a private-sector survey shows, indicating US tariffs are having an impact, reports Reuters.

The Cain/S&P Global manufacturing PMI fell to 48.3 in May from 50.4 in April, missing analysts' expectations in a Reuters poll and marking the first contraction since September last year. It was also the lowest reading in 32 months. The 50-mark separates growth from contraction.

The result is broadly in line with China's official PMI released earlier that showed factory activity fell.