China’s Factory Activity Beats Forecasts in May, Private Survey Shows, Despite Softer Official Data China’s manufacturing activity expanded faster than anticipated in May, reaching a PMI of 51.8 in a private survey, though this marks a slowdown from the previous month. Official data indicated weaker momentum, with the manufacturing PMI falling to 50 in May. The private survey noted optimism for future growth driven by new product launches and technological advancements.

• Private survey (RatingDog China General Manufacturing PMI) showed expansion at 51.8 in May, exceeding expectations.
• Growth slowed from April’s 52.2, indicating a milder pace of improvement.
• New export business and employment saw marginal contractions.
• Input prices fell for the first time in six months, but costs remain elevated due to raw material prices, energy, and supply chain issues.
• Manufacturers expressed optimism for the next 12 months, citing new product launches and technological breakthroughs.
• Official manufacturing PMI fell to 50 in May from 50.3 in April, suggesting subdued growth.
• Mixed economic signals include slower retail sales growth but a pickup in domestic tourism during the May Day holiday.