China's manufacturing firmed in August, according to a survey released Thursday, with data indicating the economy is showing resilience, despite a decline in new export orders.
The China Federation of Logistics and Purchasing, an industry group, said its purchasing managers index rose 0.2 points from the month before to 50.9, showing activity expanding slightly. Figures above 50 show expansion, and below contraction.
China has been a bright spot amid global economic gloom and a slowdown could have repercussions for other countries that are looking to its giant manufacturing industries to drive demand for iron ore, factory machinery and other goods.
Renewed worries over Europe's debt crisis and the sluggish U.S. economy have prompted many analysts to revise growth forecasts for China downward.
Given the bleak global outlook, China still needs to build a more solid foundation for growth, the federation's analyst Zhang Liqun, said in the report.
"There are still many uncertain factors. The significant drop in new export orders suggests a likely weakening in exports," Zhang said.
The strongest growth according to August's survey was in demand for food and beverages and telecommunications and electronics equipment, the report said.
Consumer products and household goods showed expansion, while demand for raw materials and components weakened, it said.