May China's PMI overall expansion: manufacturing is at a critical point, and non-manufacturing is rebounding.

On May 31st, the National Bureau of Statistics released that in May, the Purchasing Managers' Index (PMI) for the manufacturing sector was 50.0%, a decrease of 0.3 percentage points from the previous month, hovering at the critical point. The business activity index for the non-manufacturing sector was 50.1%, an increase of 0.7 percentage points from the previous month, indicating a recovery in the non-manufacturing sector. The comprehensive PMI output index was 50.5%, an increase of 0.4 percentage points from the previous month, showing that overall, production and business activities of Chinese enterprises continued to expand. Original text: Operating Conditions of China's Purchasing Managers' Index in May 2026 I. Operating Conditions of China's Manufacturing Purchasing Managers' Index In May, the Purchasing Managers' Index (PMI) for the manufacturing sector was 50.0%, a decrease of 0.3 percentage points from the previous month, hovering at the critical point. Looking at enterprise size, the PMI for large enterprises was 51.1%, an increase of 0.9 percentage points from the previous month, higher than the critical point; the PMI for medium and small enterprises were 48.6% and 48.5% respectively, decreases of 1.9 and 1.6 percentage points from the previous month, both below the critical point. Among the 5 sub-indices that make up the manufacturing PMI, the production index was above the critical point, while the new orders index, raw materials inventory index, employed personnel index, and supplier delivery time index were below the critical point. The production index was 51.2%, a decrease of 0.3 percentage points from the previous month, still above the critical point, indicating that manufacturing production activities continued to expand. The new orders index was 49.9%, a decrease of 0.7 percentage points from the previous month, indicating a slight decline in market demand for the manufacturing industry. The raw materials inventory index was 48.6%, a decrease of 0.7 percentage points from the previous month, indicating a decrease in the inventory of major raw materials in the manufacturing industry. The employed personnel index was 48.6%, a decrease of 0.2 percentage points from the previous month, indicating a slight decline in the employment level of manufacturing enterprises. The supplier delivery time index was 49.2%, a decrease of 0.3 percentage points from the previous month, indicating that the delivery time of raw materials suppliers in the manufacturing industry continued to lengthen from the previous month. II. Operating Conditions of China's Non-Manufacturing Purchasing Managers' Index In May, the business activity index for the non-manufacturing sector was 50.1%, an increase of 0.7 percentage points from the previous month, indicating a recovery in the non-manufacturing sector. Looking at different industries, the business activity index for the construction industry was 48.8%, an increase of 0.8 percentage points from the previous month; the business activity index for the service industry was 50.3%, an increase of 0.7 percentage points from the previous month. In the service industry, the business activity index for industries such as railway transportation, telecommunications, broadcasting and satellite transmission services, and insurance were all above 55.0%, indicating a relatively high economic level; while the business activity index for industries such as aviation transportation and real estate were below the critical point. The new orders index was 45.0%, an increase of 0.7 percentage points from the previous month, indicating a slight recovery in market demand for the non-manufacturing industry. Looking at different industries, the new orders index for the construction industry was 43.5%, an increase of 1.9 percentage points from the previous month; the new orders index for the service industry was 45.3%, an increase of 0.5 percentage points from the previous month. The input price index was 52.2%, an increase of 0.5 percentage points from the previous month, indicating an overall rise in input prices for non-manufacturing businesses. Looking at different industries, the input price index for the construction industry was 53.7%, a decrease of 1.2 percentage points from the previous month; the input price index for the service industry was 52.0%, an increase of 0.8 percentage points from the previous month. The sales price index was 48.8%, an increase of 0.7 percentage points from the previous month, indicating a narrowing of the overall sales price level for non-manufacturing businesses. Looking at different industries, the sales price index for the construction industry was 48.6%, a decrease of 0.4 percentage points from the previous month; the sales price index for the service industry was 48.9%, an increase of 1.0 percentage points from the previous month. The employed personnel index was 45.6%, an increase of 0.1 percentage points from the previous month, indicating a slight improvement in the employment level of non-manufacturing businesses. Looking at different industries, the employed personnel index for the construction industry was 41.4%, an increase of 1.8 percentage points from the previous month; the employed personnel index for the service industry was 46.4%, a decrease of 0.1 percentage points from the previous month. The business activity expectation index was 54.8%, an increase of 0.1 percentage points from the previous month, indicating an enhanced confidence in market development for non-manufacturing businesses. Looking at different industries, the business activity expectation index for the construction industry was 51.5%, an increase of 1.0 percentage points from the previous month; the business activity expectation index for the service industry was 55.4%, remaining the same as the previous month. III. Operating Conditions of China's Comprehensive PMI Output Index In May, the comprehensive PMI output index was 50.5%, an increase of 0.4 percentage points from the previous month, indicating that overall, production and business activities of Chinese enterprises continued to expand. This article is selected from the "National Bureau of Statistics", edited by GMTEight: Chen Siyu.