BEIJING, CHINA / MENA Newswire / — China’s official manufacturing purchasing managers’ index fell to 50.0 in May from 50.3 in April, placing factory activity at the threshold that separates expansion from contraction. The reading, released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing, showed a slowdown after two months above the 50-point line, with production remaining positive while demand indicators weakened across the survey.
The production sub-index stood at 51.2 in May, easing from April but staying in expansion territory, indicating continued output at manufacturing companies. The new orders index fell to 49.9, down 0.7 percentage point from the previous month, moving below the threshold and pointing to softer demand. New export orders dropped to 48.6 from 50.3, showing a sharper decline in overseas demand for Chinese manufactured goods during the month.
The data showed uneven conditions across China’s industrial base. High-tech manufacturing recorded a PMI of 52.9, while equipment manufacturing stood at 52.1, both remaining above the expansion line. The National Bureau of Statistics said high-tech manufacturing stayed in expansion for a 16th consecutive month. The figures contrasted with weaker order conditions in the broader manufacturing sector, where the headline index returned to the neutral mark.
Orders move below threshold
Price indicators remained elevated in the official survey. The raw material purchase price index was 60.5 in May, down from 63.7 in April but still well above 50, indicating continued increases in input costs for manufacturers. The factory gate price index stood at 51.6, also above the threshold. Purchasing volume registered 50.0, while inventories of major raw materials stood below the line at 48.6.
Separate official data showed non-manufacturing activity returned to expansion in May. The non-manufacturing PMI, covering services and construction, rose to 50.1 from 49.4 in April. The composite PMI, which includes manufacturing and non-manufacturing activity, increased to 50.5 from 50.1, indicating that overall business activity remained in expansion. The services activity index was 50.3, while the construction business activity index remained below 50 at 49.0.
Private survey shows expansion
A private manufacturing survey compiled by S&P Global showed a different picture of factory conditions, with the RatingDog China General Manufacturing PMI easing to 51.8 in May from 52.2 in April. The private index remained above 50 for a sixth consecutive month, though the pace of expansion slowed. The survey reported continued growth in output and total new orders, while export orders declined for the first time in five months.
China’s May PMI readings highlighted a split between steady factory production and weaker demand signals in the official survey. The headline official manufacturing index moved down to the neutral level, while production, high-tech manufacturing and equipment manufacturing remained expansionary. At the same time, new orders and export orders fell below 50, and input cost measures stayed elevated, leaving the monthly data mixed across manufacturing, services and construction.