China’s latest PMI surveys suggest the economy navigated the second quarter with a growing split between domestic and external demand. Manufacturing activity slowed in May while services improved, indicating that consumer spending at home is helping offset mounting pressure from weaker overseas markets. The data reinforce signs from April activity indicators that growth momentum has cooled despite earlier resilience in exports.
NBS PMI Manufacturing fell from 50.3 to 50.0, the weakest reading in three months. While production remained solid at 51.2, new orders slipped from expansion into contraction at 49.9. The sharpest deterioration came from foreign demand, with new export orders falling from 50.3 to 48.6.
Consumer goods producers experienced particularly pronounced weakness, underscoring the challenges facing Chinese exporters as global demand softens.
In contrast, NBS PMI Non-Manufacturing rose from 49.4 to 50.1, helped by strong travel spending during the May Day holiday period, while the services component climbed to a nine-month high of 50.3.
The private RatingDog PMI Manufacturing survey echoed the official findings. The index eased from 52.2 to 51.8 as growth in production and new orders moderated. Firms benefited from slightly easing inflation pressures, but export demand weakened noticeably. New export orders contracted for the first time in five months, providing an early signal that higher energy prices and slower global demand are beginning to affect overseas sales.
| Indicator | Previous | Latest |
|---|---|---|
| NBS PMI Manufacturing | 50.3 | 50.0 |
| Production Sub-Index | 51.2 | |
| New Orders Sub-Index | 49.9 | |
| New Export Orders | 50.3 | 48.6 |
| NBS PMI Non-Manufacturing | 49.4 | 50.1 |
| NBS Services Activity | N/A | 50.3 |
| RatingDog PMI Manufacturing | 52.2 | 51.8 |
| Production (RatingDog) | Expansion | Expansion |
| New Orders (RatingDog) | Expansion | Expansion |
| New Export Orders (RatingDog) | Expansion | Contraction |
| Inflation Pressures | Elevated | Eased |
