China PMI August picked up

Premier wen-jiabao_Photo Courtesy of Sydney forex review

The latest PMI  indicates that there’s an expansion of economic activity in the manufacturing sector. PMI dipped to a record low of 388 in November last year.

Meanwhile, a separate manufacturing index compiled by HSBC also grew for the fifth consecutive month with the index of manufacturing output increasing to 55.1 in August compared with 52.8 in July.

Premier Wen Jiabao warned last week that the economy faced unspecified new problems despite its recent improvement. He said stimulus spending and easy credit would continue in order to fuel growth.

The People’s Bank of China also said last month that it would “fine-tune” monetary policy to cushion the economy in view of the weakening world economy which slow down overseas demand from China’s exporters.

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