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China's manufacturing sector contracts in August

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Chinese manufacturing PMI for August has just been released, and it’s a shocker.

The government’s official gauge fell to 49.7 from 50.0 in July. The reading marked the fastest pace of contraction since August 2012, and was in line with market expectations.

A PMI reading below 50 points to declining levels of activity.

China manufacturing PMI August 20151

Alongside the manufacturing gauge, the NBS also reported that the expansion in non-manufacturing sectors cooled in August.

The non-manufacturing PMI reading fell to 53.4 from 53.9 in July.

While activity continued to expand, it is modest compared to levels seen in previous years.

China non manufacturing PMI August 2015

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