A private gauge of China’s manufacturing activity tumbled into contraction in May, touching the lowest level since September 2022 as tariffs continue to weigh despite a trade truce with the U.S.The Caixin manufacturing purchasing managers index slid to 48.

A private survey revealed that China’s manufacturing activity unexpectedly contracted in May to 48.3 in May 2025, down from April’s 50.4 and missing forecasts of 50.6, marking the first contraction in the sector in eight months,

China's factory activity likely contracted for a second month in May, a Reuters poll showed on Friday, suggesting trade tensions with major export markets are weighing on manufacturers' minds as the world's top two economies seek a way out of a tariff war.