Chinas Purchasing Managers Index (PMI) slipped to 51.1 in August - TopicsExpress

Chinas Purchasing Managers Index (PMI) slipped to 51.1 in August from 51.7 in July, the National Bureau of Statistics and China Federation of Logistics and Purchasing revealed. Remaining above 50, the index was still in positive territory, indicating expansion. A pullback in manufacturing, coming as the property market slumps, put on pressure to add stimulus to meet GDP expansion targets of 7.5 per cent this year. HSBCs Markit Economics manufacturing gauge stood at 50.2. Both readings fell from 51.7 in July. Stimulus measures will be announced in the next few weeks, said economist Lu Ting, of Bank of America in Hong Kong. The two PMIs both show that the current recovery is relatively weak and choppy, said Mr Lu, adding that stimulus may include a greater re-lending quota from the central bank. Analyst estimates for todays official PMI ranged from 50.3 to 51.7, said Bloomberg. The index is based on responses to surveys sent to purchasing executives at 3,000 companies.

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