China’s official manufacturing Purchasing Managers’ Index slipped to 50.0 in May 2026, down from 50.3 in April. For anyone unfamiliar with PMI readings, 50 is the line between growth and contraction.
The bigger concern is what’s dragging the number down. New export orders dropped sharply to 48.6 from 50.3 the prior month. Pair that with persistent input cost pressures squeezing manufacturers, and you’ve got a factory sector running in place while the treadmill speeds up.
The numbers behind the slowdown
Retail sales in April grew just 0.2% year-on-year. The consensus expectation was 2%. In March, the figure had been 1.7%.
Industrial output told a similar story, coming in at 4.1% year-on-year growth versus an expected 5.9%. The prior month had posted 5.7%.
