03 September 2012 07:47 [Source: ICIS news]
August PMI showed a 0.9 percentage point drop from July, continuing the decline of 0.1 percentage point recorded in the previous month, according to the China Federation of Logistics & Purchasing (CFLP), which released the official data on 1 September.
The number was below the demarcation point of 50%, indicating a contraction in manufacturing.
Despite the drop in PMI, the decline in the new-order index and unchanged export index showed that orders volumes held by companies are stablising, an analyst Zhang Liqun from UBS Securities said.
Economic growth slowdown is expected to end and the overall production level in the manufacturing industry is expected to recover steadily. Export orders will rise soon, Zhang said, with an optimistic outlook.
The drop in PMI indicates that
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