The RatingDog China Manufacturing PMI eased to 51.8 in May 2026 from an over five-year high of 52.2 in April, but came in above forecasts of 51.4. Growth for new orders and output moderated but stayed robust, supported by domestic demand, new customers and product upgrades, while export orders dipped slightly. Production also rose strongly, among the highest since late 2024. Meanwhile, employment edged into marginal contraction, and supplier delivery times lengthened for a third month, albeit modestly, alongside higher input purchases and six consecutive months of rising input stocks. Inflationary pressures eased, with input and output price increases slowing for the first time in six and seven months respectively, though costs remained elevated due to raw materials, energy and supply disruptions. Business confidence stayed positive but softened, driven by expectations of stronger demand, new orders and capacity expansion.

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