FX.co ★ China Manufacturing Growth Slows in May

The RatingDog China Manufacturing PMI eased to 51.8 in May 2026 from 52.2 in April, remaining above market expectations of 51.4. New orders and output stayed solid, though they moderated somewhat, supported by firm domestic demand, new customers, and product upgrades, while export orders slipped slightly. Production posted a strong increase, ranking among the highest readings since late 2024. Overall employment edged into slight contraction, as job gains in consumer goods were offset by declines in other segments. Supplier delivery times lengthened for a third consecutive month, though only modestly, in tandem with higher input purchases and a six‑month streak of rising input inventories. Inflationary pressures eased, with growth in both input and output prices slowing for the first time in six and seven months, respectively, although costs remained elevated due to raw materials, energy prices, and ongoing supply disruptions. Business confidence stayed in positive territory but moderated somewhat, underpinned by expectations of stronger demand, increased new orders, and further capacity expansion.