China’s factory activity beats forecasts in May, private survey shows, despite softer official data

BEIJING — China’s factory activity expanded in May, a private survey showed Monday, beating expectations, although growth slowed from the previous month .

The seasonally-adjusted RatingDog China General Manufacturing Purchasing Managers’ Index came in at 51.8, a touch above the 51.6 expected in a Reuters poll.

The reading was down from April’s 52.2, indicating a slower pace of improvement in manufacturing conditions. The 50 mark separates expansion from contraction.

China’s official manufacturing PMI for May fell to 50 from 50.3 in April, in-line with expectations and the lowest since a 49 print in February, according to data released Sunday.

Overall, the official PMI “suggest subdued manufacturing sector growth, increased services activity, and continued decline in the construction industry,” Goldman Sachs analysts said in a report Sunday.

While China’s retail sales growth hit a 40-month low in April, official figures showed overall domestic tourism and spending picked up during an extended May 1 holiday. Chinese hotel group H World said the 10 most popular destinations by occupancy rate were in smaller cities. Rates tend to be lower in those regions than major cities.