China’s factory activity beats forecasts in May, private survey shows, despite softer official data

Workers make US flags ahead of the 2026 World Cup football tournament, at a factory in Qingdao, in China's Shandong province on May 28, 2026. - | Afp | Getty Images BEIJING — China's factory activity improved in May, a private survey showed Monday, beating expectations even as official data pointed to weaker momentum. The seasonally-adjusted RatingDog China General Manufacturing Purchasing Managers' Index came in at 51.8, a touch above the 51.6 expected in a Reuters poll. The 50 mark separates expansion from contraction. China's official manufacturing PMI for May fell to 50 from 50.3 in April, in-line with expectations and the lowest since a 49 print in February, according to data released Sunday . Overall, the official PMI "suggest subdued manufacturing sector growth, increased services activity, and continued decline in the construction industry," Goldman Sachs analysts said in a report Sunday. While China's retail sales growth hit a 40-month low in April, official figures showed overall domestic tourism and spending picked up during an extended May 1 holiday . Chinese hotel group H World said the 10 most popular destinations by occupancy rate were in smaller cities. Rates tend to be lower in those regions than major cities.