China manufacturing growth slows in August, govt data shows

Chinese manufacturing activity growth slowed in August, an official survey showed Monday, losing momentum for the first time in six months after having hit its highest level in more than two years.

The official purchasing managers index (PMI) came in at 51.1 last month, the National Bureau of Statistics said in a statement.

The figure was down from 51.7 in July, and the first decline since slipping to 50.2 in February, according to previous data.

The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy. A reading above 50 indicates growth, while anything below points to contraction.

The August figure came in just above the median 51.0 forecast in a survey of 10 economists by Dow Jones.

July’s result had been the best since 53.3 in April 2012.

China’s official PMI data came after British bank HSBC last month announced a fall in its survey to a preliminary reading of 50.3 for August, down from a final reading of 51.7 in July and its lowest level in three months.

Its final figures are due out later Monday.

Chinese economic growth accelerated to a higher-than-expected 7.5 percent in the second quarter, up from 7.4 percent in the previous three months, which was the worst since a similar 7.4 percent expansion in July-September 2012.

Chinese authorities have since April launched a series of measures to bolster growth, including tax breaks for small enterprises, targeted infrastructure outlays and incentives to encourage lending in rural areas and to small companies.

China in March set its annual growth target for this year at about 7.5 percent, the same as last year.

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