China’s manufacturing sector posted a strong recovery in August, offering further signs that the world’s second largest economy is walking out of the shadows of protracted slowdown, official figures showed on Sunday.
The purchasing managers’ index (PMI) for the manufacturing sector rose to 51.0 per cent in August from 50.3 per cent in July, marking the second monthly expansion in a row, and the highest reading this year, according to China Federation of logistics and Purchasing (CFlP). The index tracks manufacturing activity in China’s factories. A number below 50 indicates contraction, while figures above it points towards expansion.
The 70 basis points expansion also represents the biggest increase since January. In the months prior to August, the data had swayed back and forth, state-run Xinhua news agency reported.