China factory activity stalls in May as demand weakens

Source: Reuters

China's factory activity came in flat in May, an official survey showed on Sunday, as the manufacturing sector was under pressure from weak domestic demand and ​higher production costs.

The official manufacturing purchasing managers' index (PMI) dropped to 50 from ‌50.3 in April, straddling the 50-mark separating growth from contraction, according to a survey by the National Bureau of Statistics (NBS). Economists polled by Reuters had forecast a reading of 50.

Supply improved while ​demand weakened, as the sub-indexes for production and new orders came in at ​51.2 and 49.9 in the manufacturing PMI survey. The sub-index for raw ⁠material stockpiles was 48.6.

The PMI survey results add to slowdown concerns, after data ​released earlier this month showed that growth momentum cooled in April despite a rebound in exports.

Read more: https://www.reuters.com/world/china/china-factory-activity-stalls-may-demand-weakens-2026-05-31/