ECONOMY

Plunge in Overseas Demand Hits China Manufacturing, Caixin PMI Shows

Published: Jun. 3, 2025 9:45 a.m. GMT+8

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China’s manufacturing shrank in May at the fastest pace since September 2022, with overseas demand falling at a quicker pace, a Caixin-sponsored survey showed Tuesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 48.3, down from 50.4 in April. A reading above 50 indicates an expansion in activity, while a number below that signals a contraction.

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China’s Caixin Manufacturing PMI fell to 48.3 in May from 50.4 in April, indicating contraction at the fastest pace since September 2022.
Overseas demand and new orders both declined sharply; employment shrank for the second straight month, reaching the lowest rate since January.
Despite weak conditions, business optimism improved, partly due to China-U.S. tariff de-escalation, while analysts note ongoing domestic and trade-related challenges.

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Who’s Who

Caixin Insight Group: Caixin Insight Group is an economic research organization that provides independent analysis and data on China’s economy. In the article, Wang Zhe is cited as a senior economist at Caixin Insight Group, offering expert commentary on the results of the Caixin China General Manufacturing Purchasing Managers’ Index (PMI) and broader economic trends affecting China’s manufacturing sector.

AI generated, for reference only