China’s factory activity beats forecasts in May, private survey shows, despite softer official data
Workers make U.S. flags ahead of the 2026 World Cup soccer tournament at a factory in Qingdao, China’s Shandong province, on May 28, 2026.
– | Afp | Getty Images
BEIJING — China’s factory activity expanded in May, an exclusive survey showed Monday; However, growth slowed compared to the previous month.
RatingDog China General Manufacturing Purchasing Managers’ Index, compiled by S&P Global, came in at 51.8, above the 51.6 level expected in the Reuters survey.
The reading was down from 52.2 in April; This indicated that the improvement in manufacturing conditions was progressing more slowly. The 50 mark separates expansion from contraction.
“Although the growth rate has slowed down, it remains among the highest rates observed in the past five years,” said Yao Yu, founder of credit research company RatingDog.
According to the RatingDog PMI report, new export jobs fell slightly in May, while employment also “contracted marginally”.
The report stated that seasonally adjusted input prices decreased for the first time in six months in May compared to the previous month, but costs remained high due to increasing raw material and energy prices as well as disruptions in the supply chain.
The exclusive survey of Chinese manufacturers noted optimism about growth over the next 12 months, based in part on “new product launches, technological breakthroughs and improved production capacity.”
China’s official manufacturing PMI for May fell to 50 in May from 50.3 in April; This is in line with expectations and is the lowest level since the pressure of 49 in February. Data announced on Sunday.
Overall, the official PMI points to “a slowing of growth in the manufacturing sector, an increase in services activity, and a continued decline in the construction sector,” Goldman Sachs analysts said in a report on Sunday.
China’s retail sales growth hit a 40-month low in April, while official figures showed overall domestic tourism and spending rose over a prolonged period May 1 holiday. Chinese hotel group H World He said the 10 most popular destinations based on occupancy rate are small cities. Rates tend to be lower in these areas than in larger cities.
