Shanghai, China, (EFE) – China’s manufacturing activity continued expanding in May, beating expectations even as it slowed from the previous reading — which had been the strongest since 2021 — according to data released Monday by specialized consultancy RatingDog.
The Purchasing Managers’ Index (PMI) — the sector’s benchmark indicator — compiled by the firm in partnership with rating agency Standard & Poor’s (S&P) and widely used by international investors to analyze China’s manufacturing sector, eased from 52.2 to 51.8 points in the fifth month of 2026.
Analysts had expected a sharper slowdown, with forecasts centered around 51.4.
In PMI terms, a reading above 50 signals expansion in sector activity compared to the previous month, while a reading below 50 indicates contraction.
RatingDog’s reading paints a more optimistic picture than the official one, published Sunday by China’s National Bureau of Statistics (NBS), which came in right at the 50-point threshold in May — 0.3 points below the prior reading.
The consultancy’s founder, Yao Yu, noted Monday that the sub-index tracking new orders — a key demand indicator — moderated its growth in May but remained among the highest readings of the past five years, even despite a “slight decline” in orders from foreign markets.
According to his analysis, inflationary pressures “moderated,” offering “some relief” to firms in the sector, though input prices continued rising at an above-average pace due to higher raw material and energy costs, as well as supply chain disruptions.
Business owners surveyed by RatingDog continued to show optimism about the next twelve months, with expectations pointing to stronger market demand ahead.
Yao nevertheless cautioned that factors such as moderating demand growth and declining foreign orders are “key risks that warrant attention.”
