Caixin PMI Shows Surge in China Manufacturing, Despite Global Challenges

China’s manufacturing activity surged in May, growing at the fastest rate in nearly two years, driven by production increases and new orders, particularly among smaller firms, according to the Caixin/S&P Global PMI, which rose to 51.7. Despite this positive outlook for the second quarter, global risks persist. China’s efforts to boost infrastructure and high-tech manufacturing to counter weak domestic demand and a prolonged property crisis have yet to fully impact businesses and workers. This optimistic private sector PMI contrasts with an official survey showing a decline in manufacturing activity.