The official manufacturing purchasing managers’ index fell to 50 from 50.3 in April, the National Bureau of Statistics said Sunday. The median estimate of economists surveyed by Bloomberg was 50.
The non-manufacturing measure of activity in construction and services rose more than forecast to 50.1 from 49.4 last month, the statistics office said. A reading below 50 indicates contraction.
China’s economy is showing signs of faltering after a strong first quarter. Growth slowed across the board in April, with industrial production and retail sales posting their weakest gains in years, prompting economists to call for stronger policy support.
In a sign Beijing is heeding the call, China’s central bank let the interest rate on a one-year policy loan to banks decline to a record in May. China also issued a plan to open up public services like schools and health care in cities, potentially expanding access for migrant workers as part of a broader effort to boost living standards and consumer spending.
Chinese exports have continued to surge this year despite the war in Iran, after reporting an unprecedented trade surplus of $1.2 trillion in 2025.
