China’s manufacturing sector suffered a significant setback in May 2025, with activity plunging to its lowest level since September 2022. The latest data, published by Caixin and S&P Global, show the Purchasing Managers Index (PMI) fell sharply to 48.3, down from 50.4 in April and well below the neutral threshold of 50 that separates growth from contraction. This marks the first contraction in eight months and the steepest decline in nearly three years.
