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China Manufacturing Registers August Upswing

China’s manufacturing sector enjoyed a productive August, expanding at its fastest monthly rate so far in 2009, according to the Chinese Federation of Logistics and Purchasing. The Federation’s manufacturing purchasing managers index rose to 54, up from 53..3 in July – marking the sixth straight month of growth. The Federation’s index of new orders, however, remained unchanged from the July mark of 55.

We have long advocated running the official PMI through a seasonal adjustment program as even though the figures are claimed to be adjusted for seasonal effects they aren’t adjusted very well,” commented Eric Fishwick, Head of Economic Research, CLSA Asia Pacific Markets. “ Seasonal affects account for some for some of the August increase but not all – manufacturing is continuing to accelerate.”

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