Workers make American flags ahead of the 2026 World Cup soccer tournament at a factory in Qingdao, Shandong province, China, May 28, 2026.
– | AFP | Getty Images
BEIJING – China’s manufacturing activity expanded at a faster-than-expected pace in May, according to a private survey released on Monday, but growth slowed from the previous month and contrasted with soft official data showing weak momentum in the sector.
S&P Global’s Rating Dog China Manufacturing Purchasing Managers’ Business Index came in at 51.8, slightly higher than the 51.6 expected in a Reuters poll.
This was down from 52.2 in April, indicating that the pace of improvement in the manufacturing industry situation is slowing down. The 50 mark separates enlargement and reduction.
“Although the growth rate has slowed, it is still at the highest level observed in the past five years,” said Yao Yu, founder of credit bureau RatingDog.
According to RatingDog’s PMI report, new exports fell slightly in May, while employment also “slightly contracted.”
The report said seasonally adjusted input prices fell month-on-month in May for the first time in six months, but costs remained elevated due to soaring raw material and energy prices and supply chain disruptions.
A private survey of Chinese manufacturers found optimism about growth over the next 12 months, based in part on “new product launches, technological advances and increased production capacity.”
Because RatingDog’s research samples a smaller group of export-oriented manufacturers, it often differs from the official manufacturing PMI, which covers a broader segment of China’s manufacturing industry.
Data released Sunday showed China’s official manufacturing PMI in May was 50, down from 50.3 in April, in line with expectations and the lowest level since February’s 49.
Analysts at Goldman Sachs said in a note on Sunday that the official PMI overall suggests “slower growth in manufacturing, an increase in services activity and a continued decline in construction.”
There are mixed signs in manufacturing as China’s overall economy continues to show uneven momentum.
China’s retail sales growth in April was the slowest in 40 months, but official figures showed overall domestic tourism and spending rebounded during the May 1 long holiday. Chinese hotel groups H world It said the top 10 most popular destinations by occupancy are in smaller cities. Rates tend to be lower in these areas than in major cities.
