China Manufacturing PMI at 50.0% in May 2026

China's manufacturing Purchasing Managers' Index (PMI) stood at 50.0% in May 2026, exactly at the threshold separating expansion from contraction, according to data released by the National Bureau of Statistics (NBS) on May 31. The reading indicates that manufacturing sector operations remained broadly stable during the month.

The production index came in at 51.2%, remaining above the 50-point mark, signaling continued expansion in manufacturing activity. However, the new orders index slipped to 49.9%, suggesting a slight cooling in market demand. By industry, sectors such as pharmaceuticals, railway/ship/aircraft/spacecraft equipment, and computer/communications/electronic equipment reported both production and new orders indices above 53.0%, reflecting robust supply and demand. In contrast, industries including oil/coal and other fuel processing, chemical fibers/rubber/plastic products, and non-metallic mineral products saw both indices persistently below the breakeven point, indicating weak supply and demand.

New growth drivers continued to improve. The high-tech manufacturing PMI reached 52.9%, up 0.7 percentage points from April, while the equipment manufacturing PMI stood at 52.1%, up 0.3 points. Both have been above 50% for an extended period, with high-tech manufacturing staying in expansion for 16 consecutive months. The consumer goods industry PMI fell to 49.7% (down 1.0 point), and the high-energy-consumption industry PMI dropped to 47.1% (down 0.8 point), indicating weaker market activity.

By enterprise size, large enterprises posted a PMI of 51.1%, up 0.9 points and remaining in expansion since the start of the year. Medium-sized enterprises had a PMI of 48.6%, and small enterprises 48.5%, both falling into contraction.

Price indices remained elevated but moderated. The purchasing price index for major raw materials was 60.5%, down 3.2 points from April, while the factory gate price index was 51.9%, also down 3.2 points. Both have been above 50% for five consecutive months, reflecting continued upward pressure on manufacturing prices. Industries such as textiles, chemical fibers/rubber/plastics, and ferrous metal smelting/rolling saw both price indices above 55.0% for three straight months.

The non-manufacturing Business Activity Index rose to 50.1% in May, up 0.7 points from April, indicating a recovery in non-manufacturing sentiment. The services sub-index reached 50.3% (up 0.7 points), moving back into expansion. Railway transport, telecommunications/broadcasting/satellite transmission, and insurance all recorded indices above 55.0%, showing rapid business growth. Air transport and real estate remained below 50%. The services business expectations index stood at 55.4%, signaling optimism among most service enterprises.

The construction Business Activity Index came in at 48.8%, up 0.8 points, improving but still in contraction. The construction business expectations index rose to 51.5% (up 1.0 point), indicating recovering confidence.

The composite PMI output index, which combines manufacturing production and non-manufacturing business activity, was 50.5% in May, up 0.4 points, confirming that overall business activity continued to expand. The underlying components were a manufacturing production index of 51.2% and a non-manufacturing business activity index of 50.1%.

Source: National Bureau of Statistics of China. Original: https://www.stats.gov.cn/sj/sjjd/202605/t20260531_1963825.html