The RatingDog China General Composite PMI rose to 54.0 in May 2026 from 53.1 in April, its highest level since February and a clear sign of further strengthening in private-sector activity. The latest reading marked the second-fastest pace of expansion in the past two years, supported by a more robust services sector and solid growth in manufacturing output.
New business increased at the quickest rate in three months, underscoring improving demand conditions across the economy. Backlogs of work rose for a fourth consecutive month, pointing to sustained capacity pressures. Employment also edged higher, driven mainly by recruitment in the services sector to accommodate rising workloads.
On the price front, input cost inflation eased for the first time since January, which in turn helped moderate the pace of increase in output prices charged to customers. Overall cost pressures remained broadly in line with the long-run average, indicating that inflationary pressures remained contained and manageable.
