China’s factory activity likely remains flat in May as domestic demand drags
China's factory activity is expected to remain flat in May as domestic demand continues to struggle. A Reuters poll predicts the manufacturing PMI will drop to 50, indicating stagnation after a slight increase in April. Analysts warn that without stronger intervention from policymakers, achieving China's growth targets may be challenging.
- ▪The manufacturing PMI is projected to fall to 50 for May, down from 50.3 in April.
- ▪Retail sales growth and industrial production both fell below expectations in April.
- ▪Rising input costs without corresponding demand growth could lead to margin compression.
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China’s factory activity likely remains flat in May as domestic demand drags A Reuters poll of economists forecasts China's manufacturing PMI slipping to the neutral 50 mark, erasing modest April gains and raising pressure on Beijing to act. Share Add us on Google by Editorial Team May. 29, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); China’s manufacturing engine appears to be idling.
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