FX.co ★ China’s Services Activity Edges Back Into Expansion as Non-Manufacturing PMI Rises to 50.1 in May

China’s non-manufacturing sector returned to expansion in May, with the Non-Manufacturing Purchasing Managers’ Index (PMI) ticking up to 50.1, after slipping into contraction a month earlier. The latest reading, updated on 31 May 2026, compares with 49.4 in April 2026.

The move back above the 50-point threshold — which separates expansion from contraction — suggests a modest improvement in activity across China’s services and other non-manufacturing industries. While the gain from April is relatively small, it marks a shift in momentum after the prior month’s weakness and indicates that demand in key service segments is stabilizing rather than deteriorating further.

The May rebound will be closely watched by market participants assessing the health of China’s broader economy, as non-manufacturing industries play a growing role in the country’s growth profile. Further readings in the coming months will help determine whether May’s data represent the start of a sustained recovery or a temporary uptick in activity.