Sep. 3, 2012 (China Knowledge) - China's official purchasing managers' index, a major indicator of the strength of the manufacturing sector, dropped to 49.2 in August, a decrease of 0.9 point from 50.1 in July, according to figures jointly released by the China Federation of Logistics and Purchasing and the National Bureau of Statistics
This is the first time China saw its PMI below 50 since November 2011, and the figure was lower than an average forecast of 50 made by 11 analysts at Dow Jones Newswires.
The production index decreased 0.9 point from the previous month to 50.9 in August. The new export order stood at 46.6, the same as it realized in July 2012.
The raw material inventory index decreased 3.4 points to 45.1 in August.
The raw material purchasing price index grew 5.1 point from the previous month to 46.1.
The PMI consists of five sub-indices that measure economic performance: production index, new order index, raw material inventory index, employment index and supplier delivery index, a reading of above 50 suggests expansion, while a figure below 50 indicates contraction.