MNI BRIEF: Caixin May Manufacturing PMI Falls Into Contraction

China's Caixin manufacturing PMI came in at 48.3 in May, down from April's 50.4, falling into the contraction zone below the 50 mark for the first time since October 2024, the financial publisher said on Monday.

The new order sub-index dropped below 50 to hit the lowest level since October 2022, partly due to the impact of the U.S. reciprocal tariff, said Caixin, adding that the new export order sub-index further declined into the contraction range. The production sub-index also ended the continuous expansion that lasted 1.5 years and fell to the lowest level since December 2022.

Caixin's PMI mainly tracks SME manufacturers. The official PMI released on Saturday, which typically covers large state-owned companies, registered 49.5 in May, up from April's 49.0 reading.