BEIJING (AP) — China's manufacturing strengthened in August, an official survey showed Sunday, offering hope that the country's slowdown is stabilizing.
The China Federation of Logistics and Purchasing's manufacturing index rose to 51.0 percent from July's 50.3 percent, the second monthly expansion in a row. The federation said it was the highest reading and the biggest increase this year.
The index uses a 100-point scale on which numbers below 50 indicate contraction.
In a report accompanying the survey, analyst Zhang Liqun said the increase showed that market expectations improved and that companies were better able to adapt to changes in the business environment.
But he added that while the purchasing manufacturing index shows the economy is stabilizing, "manufacturing is still weak in small and midsized businesses, meaning we need to push forward with transformation and upgrading."