Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, in May, the Caixin China Manufacturing Purchasing Managers’ Index (PMI) fell into contraction territory (below 50) for the first time in eight months, showing the impact of the U.S. tariffs on China’s manufacturing industry.
Caixin’s May manufacturing PMI reached 48.5, a 32-month low. Caixin’s data showed that, in the face of the high tariffs imposed by U.S. President Trump since April 2, China’s sub-index of new export orders in May fell further into the contraction range, the largest decline since July 2023. This also caused the sub-index of new orders in May to fall to a new low since October 2022. On the manufacturing job market side, faced with continued weak demand, the employment sub-index in May continued to decline below 50 and recorded the largest drop this year. The employment of investment goods manufacturing companies decreased significantly.
In the meantime, the National Bureau of Statistics of China released its official May Manufacturing PMI at 49.5. Caixin PMI is a well-respected economic indicator monitored globally by financial institutions. Compared with the government official PMI, the Caixin PMI results represent more on the side of small and medium-sized export-oriented companies.
Source: Lianhe Zaobao, June 3, 2025
https://www.zaobao.com.sg/finance/china/story20250603-6554941