Factory activity growth in China eased in May, although new orders and output remained strong. Despite the slight slowdown, growth outpaced market expectations, according to data compiled by S&P Global on Monday.

The seasonally adjusted RatingDog China General Manufacturing PMI came in at 51.8, slower than the 52.2 mark in April, still within the growth range.

The reading for May exceeded a consensus estimate of 51.4 from Investing.com, and is also above the long-run survey trend of 50.8 since 2004, S&P Global said.

"While the rate of growth eased, it remained among the highest observed over the past five years," RatingDog founder Yao Yu said.

The figure compares with China's official purchasing managers' index, which fell to a neutral reading of 50 in may from 50.3 in April, the lowest in three months. It also came in lower than the 50.2 consensus estimate from Investing.com.

A reading above 50 means growth, while a reading below 50 indicates contraction.

Manufacturers saw an increase in new orders, signaling stronger market demand, product improvements, new customers, and promotional drives, the debt watcher said, citing panelists.

The increase in new orders was stronger than the long-run trend even if new export business slipped during the month, S&P said.

Backlogs increased for the fourth consecutive month, and manufacturing firms saw higher work-in-hand levels as staffing levels declined marginally during the month.

This compares with consumer goods firms, which saw increased staffing levels, the report said.

Inflationary pressures also softened during the month, with the seasonally adjusted input prices sub-index sliding for the first time in six months and the output prices sub-index falling for the first time in seven, S&P said.

Increased costs for raw materials and energy due to supply chain woes arising from geopolitical conflicts caused input prices to increase, S&P said.

Average supply chain lead time extended for the third straight month, but the impact remained modest, the report said.

While manufacturers sustained expansion in May and softer inflationary pressures alleviated firms' costs, continued moderation in growth and external orders "are key risks warranting attention," Yao said.

Manufacturers were also bullish about output growth over the next 12 months even as overall confidence moderated slightly in April but remained in line with the year-to-date average, S&P said.