Update: China's manufacturing PMI drops to 50 in May

Update: China's manufacturing PMI drops to 50 in May

China's manufacturing PMI fell to 50 in May 2026 (–0.3 pp), landing exactly at the expansion threshold as new orders slipped into contraction territory at 49.9, while production held at 51.2. High-tech manufacturing has stayed in expansion for 16 consecutive months (PMI 52.9), signaling that hardware and advanced equipment supply chains remain resilient despite softening end-demand — a key variable for budget and sourcing decisions tied to China-based component production.