China factory activity beats forecasts in May private survey
A private survey released on Monday indicates China’s manufacturing sector grew at a faster pace than analysts predicted, contrasting with softer official figures released previously.
China’s manufacturing activity expanded faster than expected in May, according to a private survey released on Monday, although growth slowed from April. The data, reported by CNBC, highlights a divergence between private sector sentiment and official statistics, which have shown softer readings recently.
The survey results suggest that factory activity remained resilient in the second month of the year, defying some market expectations. However, the pace of expansion was not as robust as the figures recorded in the previous month, indicating a moderation in the sector's momentum.
This economic data emerges against a backdrop of heightened diplomatic engagement between Washington and Beijing. US President Donald Trump arrived in the Chinese capital on 14 May 2026 for a two-day summit with President Xi Jinping, marking the first visit by an American president to China since 2017.
The summit, attended by a delegation of major US technology executives including Elon Musk, Tim Cook, and Jensen Huang, focused on trade, artificial intelligence, and regional security issues such as the Strait of Hormuz. The diplomatic talks coincided with positive movements in US equity markets, with the Dow Jones Industrial Average gaining 0.8% and the S&P 500 rising 0.3% on the day the summit began.
Corporate developments in the technology sector also influenced market sentiment during this period. Nvidia shares surged more than 2% following US approval for a chip sale, while Cisco announced plans for job cuts as part of a broader restructuring effort. These corporate shifts occurred alongside the macroeconomic data releases, underscoring the complex interplay between policy, trade, and industrial performance.
