Workers make US flags ahead of the 2026 World Cup football tournament, at a factory in Qingdao, in China’s Shandong province on May 28, 2026.<\/p>\n
– | Afp | Getty Images<\/p>\n
BEIJING \u2014 China’s manufacturing activity expanded faster than expected in May, according to a private survey released Monday, although growth slowed from the previous month and contrasted with softer official data pointing to weaker momentum in the sector.<\/p>\n
The RatingDog China General Manufacturing Purchasing Managers’ Index, compiled by S&P Global, came in at 51.8, a touch above the 51.6 expected in a Reuters poll. <\/p>\n
The reading was down from April’s 52.2, indicating a slower pace of improvement in manufacturing conditions. The 50 mark separates expansion from contraction.<\/p>\n
“While the rate of growth eased, it remained among the highest observed over the past five years,” said Yao Yu, founder of credit research firm RatingDog.<\/p>\n
New export business saw a slight decline in May, the RatingDog PMI report said, while employment also “contracted marginally.” <\/p>\n
Seasonally adjusted input prices fell in May from the prior month for the first time in half a year, although costs remained elevated due to higher prices for raw materials and energy, as well as supply chain disruptions, the report said.<\/p>\n
The private survey of Chinese manufacturers noted optimism for growth over the next 12 months, based partly on “new product launches, technological breakthroughs and improved production capacity.”<\/p>\n
Because it samples a smaller group of export-oriented manufacturers, the RatingDog survey often differs from the official manufacturing PMI, which covers a broader segment of China’s manufacturing sector.<\/p>\n
China’s official manufacturing PMI for May fell to 50 in May from 50.3 in April, in line with expectations and its lowest since a 49 print in February, according to data released Sunday<\/a>.<\/p>\n Overall, the official PMI suggests “subdued manufacturing sector growth, increased services activity, and continued decline in the construction industry,” Goldman Sachs analysts said in a report Sunday.<\/p>\n The mixed manufacturing signals come as China’s broader economy continues to show uneven momentum.<\/p>\n While China’s retail sales growth<\/a> hit a 40-month low in April, official figures showed overall domestic tourism and spending picked up during an extended May 1 holiday<\/a>. Chinese hotel group H World<\/a> said the 10 most popular destinations by occupancy rate were in smaller cities. Rates tend to be lower in those regions than major cities.<\/p>\n