China Factory Activity Stalls in May as Demand Weakens and Costs Rise

China’s manufacturing sector showed little growth in May 2026, raising concerns about the strength of the world’s second-largest economy. According to an official survey released on Sunday, factory activity remained flat as export orders declined and production costs continued to rise.
Analysts say weaker international demand and ongoing economic pressures are affecting manufacturing output. While some sectors, including technology and services, continue to show resilience, the broader industrial sector faces increasing challenges.
The slowdown comes as global markets closely monitor China’s economic performance due to its significant impact on international trade and supply chains. Economists warn that prolonged weakness in manufacturing could affect global growth prospects in the coming months.
China’s government is expected to introduce additional measures to support economic activity and stabilize growth if conditions continue to weaken.


