gauge of China’s manufacturing activity has fallen below the boom-or-bust line for the second straight month. China and the United States agreed to temporarily reduce tit-for-tat levies in May, but uncertainties remain.

The Purchasing Managers’ Index for May came in at 49.5. That’s up 0.5 points from the figure the previous month.

The National Bureau of Statistics surveyed 3,200 manufacturers in compiling the index. Figures above 50 represent growth while those below indicate contraction.

The gauge for large companies stood at 50.7, but midsize firms were at 47.5, and small enterprises at 49.3.

The readings for non-manufacturers, such as service sector businesses, dropped 0.1 percentage points from the previous month to 50.3 in May.

These figures follow a trade truce reached last month between China and the United States.

Under the deal, both sides cut their additional tariffs by 115 percentage points, with part of the cut suspended for 90 days.

It raises hopes of easing tension. But concerns remain that friction may return if their negotiations break down.