(ICIS) -- China's purchasing managers' index (PMI) rose by 0.2 percentage points from July to 50.9% in August, according to the China Federation of Logistics & Purchasing (CFLP) on Thursday.
This is the first time the PMI has rebounded after declining for four consecutive months, raising expectations that the Chinese economic recovery is gradually stabilising, said Zhang Liqun, an analyst from CFLP.
Among the PMI sub-indices in August, the new order index remained stable at 51.1% in July, while the country's production index increased by 0.2 percentage points from July to 52.3%, according to official data from CFLP.
The slight increase of 0.2 percentage points stopped the consecutive decline of China's PMI. In addition, the increase shows that the manufacturing sector has rebounded despite the government's tightening monetary policy and slowing global economic growth, said an analyst from Zhicheng Securities.
Meanwhile, China's increasing purchasing index showed that cost pressure still weighs on small and medium-sized enterprises, Zhang added.