China's manufacturing growth slows as PMI eases to 50.0 in May

• China factory activity expands at slowest pace in 3 months
  
  
• Export demand softens, producers' purchasing activity slows
  
  

Metal Intelligence Centre: China's manufacturing sector remained in expansion territory in May 2026, although growth momentum moderated amid weakening demand and ongoing external uncertainties. According to the National Bureau of Statistics (NBS), the official Manufacturing PMI eased to 50.0 in May from 50.3 in April, in line with market expectations and indicating a slowdown in industrial activity.

Manufacturing output continued to expand but at its slowest pace in three months, while new orders contracted after two consecutive months of growth. Export orders also returned to decline following a modest improvement in April, reflecting fragile global demand. Employment conditions remained subdued, and purchasing activity fell for the first time in three months, highlighting a cautious approach among manufacturers. Market sentiment was further impacted by elevated input costs and supply-chain concerns linked to ongoing geopolitical tensions in the Middle East.

The private-sector survey conducted by RatingDog echoed a similar trend. The RatingDog Manufacturing PMI slipped to 51.8 in May from 52.2 in April, signalling continued expansion but at a slower pace. While domestic business conditions remained relatively resilient, export demand softened, with new export orders recording a slight contraction during the month.

Overall, both official and private-sector indicators suggest that China's manufacturing sector continues to expand but is gradually losing momentum. Easing inflationary pressures have helped alleviate some cost burdens for manufacturers; however, slowing domestic demand growth and weaker export orders remain key challenges. Going forward, the trajectory of domestic consumption and global trade conditions will be closely watched as policymakers seek to support and sustain the country's industrial recovery.

Note: This article has been published as part of a content exchange partnership between Metal Intelligence Centre and BigMint.