BEIJING, June 1 (Reuters) – China’s manufacturing sector expanded for a sixth straight month in May, although at a slower pace, as output and new orders remained solid and price pressures eased, a private survey showed on Monday.
The RatingDog China General Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 51.8 in May from 52.2 in April, but was slightly above analysts’ forecast of 51.6. The 50-mark separates growth from contraction.
“Overall, the manufacturing sector sustained its expansion in May, albeit at a slower pace. The easing of inflationary pressures provided some relief to firms’ cost and pricing environments,” said Yao Yu, founder of RatingDog.
The reading was better than an official survey published on Sunday showing factory activity stalled in May, dropping to 50 from 50.3 in April.
Production rose for a sixth successive month, led by investment goods, the private survey showed. Firms attributed the increase to stronger market demand, higher new orders, product improvements and new business.
New orders increased for a 12th consecutive month, though the pace of expansion slowed from April.
New export orders, however, contracted for the first time in five months – an early sign that rising energy prices weighed on global demand for Chinese goods.
Price pressures eased in May, with both input and output price inflation easing for the first time in six and seven months, respectively.
Input cost inflation fell to a three-month low, with the investment goods sector recording the sharpest increase and consumer goods the weakest.
Average output inflation eased to a three-month low but remained above the long-run average. Intermediate goods producers recorded the fastest rise in output prices, while consumer goods firms posted the slowest increase.
Chinese goods producers raised their export charges for a sixth consecutive month, albeit at a slower pace than in April.
Backlogs of work increased for a fourth straight month as sustained order growth and supply delays added to workloads. Employment fell to a five-month low and was below the 50.0 mark, signalling a reduction in staffing.
Manufacturers remained optimistic about output over the next 12 months, though confidence weakened from April and matched the average for 2026 so far.
Yao said moderating demand growth and softer external orders were risks that warranted attention.
(Reporting by Ellen Zhang and Ryan Woo; Editing by Jacqueline Wong)
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