China's manufacturing sector unexpectedly contracts in May
By Michele Maatouk
Date: Tuesday 03 Jun 2025
(Sharecast News) - Activity in China's manufacturing sector unexpectedly contracted in May, according to data released on Tuesday.
The Caixin/S&P Global manufacturing purchasing managers' index fell to 48.3 from 50.4 in April, missing expectations for a reading of 50.7. It marked the lowest level since September 2022.
A reading above 50.0 indicates growth, while a reading below signals contraction.
Wang Zhe, senior economist at Caixin Insight Group, said: "Overall, in May, manufacturing supply and demand declined, dragged by overseas demand. Employment continued to shrink, while prices remained weak. Logistics were delayed moderately, with manufacturing stocks remaining stable. Business optimism recovered slightly from April's low.
"Currently, unfavourable factors affecting China's economic development remain relatively prevalent. Uncertainty in the external trade environment has increased, adding to domestic economic headwinds
"Major macroeconomic indicators showed a marked weakening at the start of the second quarter. The downward pressure on the economy has significantly intensified compared to preceding periods."
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