A private survey revealed that China’s manufacturing activity unexpectedly contracted in May to 48.3 in May 2025, down from April’s 50.4 and missing forecasts of 50.6, marking the first contraction in the sector in eight months,

A private gauge of China’s manufacturing activity tumbled into contraction in May, touching the lowest level since September 2022 as tariffs continue to weigh despite a trade truce with the U.S.The Caixin manufacturing purchasing managers index slid to 48.

China has grappled with entrenched deflationary pressure, as a prolonged real estate downturn and job insecurity hampered investment, consumer spending.