According to the China Federation of Logistics and Purchasing, growth in China manufacturing sector rebounded in August after recording slower growth for four consecutive months with the Purchasing Managers' Index up 0.2 percentage point from July to 50.9 in August.

A reading of more than 50 indicates expansion while a reading of less than 50 suggests contraction.

Mr Zhang Liqin analyst said the fairly sharp drop in the sub-index for new export orders may signal a fall in future export growth. He said that a slowdown in the growth rates in infrastructure and real estate investments.

The sub-index for new export orders fell 2.1 percentage points MoM to 48.3 with 10 industries including the communications equipment and other electronic equipment manufacturing, tobacco manufacturing and apparel sectors posting readings of more than 50.

Ten other industries, including the chemical raw materials and products production, transportation equipment manufacturing and wood processing and furniture manufacturing sectors posting readings of less than 50.

The sub index for new orders hit 51.1, unchanged from last month. Eight industries, such as the agricultural production and processing, beverage production, tobacco manufacturing, communications equipment and other electronic equipment manufacturing industries posted readings of more than 50. Twelve industries including the chemical raw materials and products production sector recorded readings of less than 50.

The purchasing price sub-index rose 0.9 percentage point MoM to 57.2. Three industries including the non-ferrous metal smelting and rolling and textile industries recorded readings of less than 50 with the remaining 17 industries posting readings of more than 50. The production sub-index rebounded 0.2 percentage point from July to 52.3. Ten industries, led by the agricultural production and processing and beverage production industries had readings of more than 50.

Ten other industries, such as the chemical raw materials and products production sector, posted readings of less than 50. The finished goods inventory sub index dropped 0.3 percentage point MoM to 48.9. Eight industries including the wood processing and furniture manufacturing and textile industries posting readings of more than 50.

(Sourced from www.capitalvue.com)