China Manufacturing Stagnates in May

2026-05-31 01:40 By Farida Husna 1 min. read

China’s official NBS Manufacturing PMI edged down to 50.0 in May 2026 from 50.3 in the previous month, matching market expectations.

The latest reading suggested manufacturers continued to face headwinds from soft domestic demand and rising input costs linked to the ongoing conflict in the Middle East.

Output growth eased to a three-month low (51.2 vs 51.5 in April), while new orders shrank after expanding in the prior two months (49.9 vs 50.6).

Also, foreign orders dropped after a modest increase previously (48.6 vs 50.3).

Employment remained subdued (48.6 vs 48.8), and purchasing activity contracted for the first time in three months (49.8 vs 51.1).

Supplier delivery times improved slightly (49.2 vs 49.5).

On the price front, input cost inflation moderated but remained elevated (60.5 vs 63.7), while output price growth softened to its weakest pace in three months (51.9 vs 55.1).

Finally, business sentiment stayed positive, though it eased slightly from April's level (53.9 vs 54.5).



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China Manufacturing Stagnates in May
China’s official NBS Manufacturing PMI edged down to 50.0 in May 2026 from 50.3 in the previous month, matching market expectations. The latest reading suggested manufacturers continued to face headwinds from soft domestic demand and rising input costs linked to the ongoing conflict in the Middle East. Output growth eased to a three-month low (51.2 vs 51.5 in April), while new orders shrank after expanding in the prior two months (49.9 vs 50.6). Also, foreign orders dropped after a modest increase previously (48.6 vs 50.3). Employment remained subdued (48.6 vs 48.8), and purchasing activity contracted for the first time in three months (49.8 vs 51.1). Supplier delivery times improved slightly (49.2 vs 49.5). On the price front, input cost inflation moderated but remained elevated (60.5 vs 63.7), while output price growth softened to its weakest pace in three months (51.9 vs 55.1). Finally, business sentiment stayed positive, though it eased slightly from April's level (53.9 vs 54.5).
2026-05-31
China Manufacturing Growth Beats Estimates
China’s official NBS Manufacturing PMI inched down to 50.3 in April 2026 from March’s 12-month high of 50.4, but surpassed expectations of 50.1. This marked the second consecutive month of expansion, though at a softer pace, supported by stronger government spending earlier in the year. Output growth accelerated to the fastest pace in four months (51.5 vs 51.4 in March), while new orders eased (50.6 vs 51.6). External demand also strengthened, with new export orders rebounding (50.3 vs 49.1). Buying activity grew at the fastest pace in four months (51.1 vs 50.9), while employment remained in contraction (48.8 vs 48.6), and supplier delivery times stayed below the threshold (49.5 vs 49.5). Meanwhile, prices continued to rise, with both input costs (63.7 vs 63.9) and output prices (55.1 vs 55.4) easing. Business confidence improved to a four-month high (54.5 vs 53.2).
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China Manufacturing Expands at Fastest Pace in a Year
China’s official NBS Manufacturing PMI rose to 50.4 in March 2026 from 49.0 in February and exceeded expectations of 50.1. This marked the strongest reading since March last year and a rebound after two months of contraction, supported by stronger government spending early in the year and resilient exports driven by AI-related global demand. Output growth accelerated (51.4 vs 49.6 in February), while new orders rebounded sharply (51.6 vs 48.6). External demand also strengthened, with new export orders rising (49.1 vs 45.0). Buying activity increased (50.9 vs 48.2), while employment remained in contraction (48.6 vs 48.0), and supplier delivery times stayed below the threshold (49.5 vs 49.1). Meanwhile, prices surged, with both input costs (63.9 vs 54.8) and output prices (55.4 vs 50.6) hitting their highest levels in four years, driven by soaring crude prices and non-ferrous metals. Business confidence eased slightly (53.4 vs 53.2) but remained optimistic.
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