Financial News: China Manufacturing Growth Softens

China Manufacturing Growth Softens

06/01/2026 - 01:56:00 (RTTNews)

(RTTNews) - China's manufacturing sector growth softened in May, while inflationary pressures showed signs of easing, survey data from S&P Global revealed Monday.

The headline RatingDog manufacturing Purchasing Managers' Index fell to 51.8 from 52.2 seen in April. The indicator has remained above the 50.0 no-change mark for the sixth straight month in May.

Demand for manufactured goods increased at a softer pace in May but remained among the highest recorded over the past five years. There was a slight fall in new export business. Production increased further in May but the rate of growth eased from April's 22-month high. Nonetheless, the increase was the third-strongest since the second half of 2024.

Backlog of work increased for the fourth straight month. Higher levels of outstanding work partly reflect a slight fall in employment.

Data showed that inflationary pressures softened in May. Both input and output prices dropped on the month for the first time in six and seven months, respectively, signaling slower rates of inflation.

Further, manufacturers were optimistic about output growth over the coming twelve months. Overall confidence moderated since April but was in line with the average for the year to date.

The easing of inflationary pressures provided some relief to firms' cost and pricing environments, RatingDog Founder Yao Yu said. "However, the continued moderation in demand growth and the softening of external orders are key risks warranting attention," Yu added.

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