China Factory Activity Grows for Sixth Month in May
The RatingDog China General Manufacturing PMI fell to 51.8 in May from 52.2 in April but remained above the growth threshold for a sixth consecutive month. While domestic demand and production stayed solid, new export orders contracted for the first time in five months amid rising energy costs.
China factory activity expanded for a sixth consecutive month in May as the private PMI reached 51.8. The reading exceeded the analyst forecast of 51.6 despite cooling slightly from 52.2 in April. Stronger domestic demand and easing price pressures are sustaining industrial growth even as export orders face new headwinds.
### Divergence Between Private and Official Data The RatingDog China General Manufacturing PMI, compiled by S&P Global, showed a more resilient manufacturing sector than official government data. While the private survey remained comfortably above the 50-mark separating growth from contraction, the official survey published on Sunday morning showed factory activity dropped to 50 from 50.3 in April. This gap suggests that smaller, private-sector firms may be navigating current market conditions more effectively than large state-owned enterprises.
