China's Manufacturing PMI Inches Up in May, Services Growth Slows Slightly

China’s Manufacturing PMI Improves in May 2025, Services Growth Slows

China’s economic indicators for May 2025 show mixed signals. According to the National Bureau of Statistics (NBS), the Manufacturing Purchasing Managers' Index (PMI) rose to 49.5, up from 49.0 in April. This suggests a slower pace of contraction in the manufacturing sector and aligns with market expectations.

China Manufacturing PMI at 49.5 — Contraction Slows

The increase in the Manufacturing PMI reflects stabilization in industrial activity, though the index remains below the 50-point threshold that separates expansion from contraction. This reading may indicate early signs of recovery efforts taking effect, amid weak global demand and domestic headwinds.

📝 A reading above 50 indicates expansion; below 50 signals contraction.

Read more on China’s industrial trends in our Manufacturing Sector Coverage.

Services Sector Expansion Slows – Non-Manufacturing PMI at 50.3

Meanwhile, the Non-Manufacturing PMI, which includes services and construction, declined slightly to 50.3 in May from 50.4 in April. The reading missed forecasts of 50.6, indicating sluggish growth in China's service-oriented industries.

Despite remaining above the growth threshold, the slowdown highlights fragile consumer demand and cautious business sentiment.

Explore deeper analysis in our Services Sector Insights.

What the PMI Data Means for China’s Economic Outlook

These latest PMI figures point to a gradual and uneven recovery in China’s economy. While manufacturing shows signs of stabilization, sluggish growth in the services sector could limit overall momentum.

Policymakers are expected to maintain targeted stimulus measures to support industrial output and boost consumer confidence.

Key Takeaways

• Manufacturing PMI rose to 49.5, showing slower contraction
• Non-Manufacturing PMI dipped to 50.3, reflecting weaker growth
• Both indicators suggest mixed momentum in China’s economic recovery
• Analysts expect continued policy support in coming months

🔗 Related Reads on Tredu.com

• China’s Economic Forecast for 2025
• Impact of PMI on Global Markets
• Understanding China’s Policy Moves