HONG KONG (Yonhap News) – China's manufacturing activity for August slowed for the fourth straight month amid global economic uncertainty, an industry group said Saturday.
The Purchasing Managers Index (PMI) of China's manufacturing sector came in at 49.2 last month, down from 50.1 in July, according to the China Federation of Logistics and Purchasing (CFLP).
The index hit its worst level since November last year, when the reading fell to 49.
The index measures the economic health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector compared to the previous month. A reading lower than 50 represents a contraction, while a reading of 50 indicates no change.
The slowing manufacturing activity showed that the export-driven Chinese economy has been affected by fading demand in the United States and Europe.
Market watchers said Chinese authorities will ease the country's monetary policies in a bid to boost the country's manufacturing activities.
China's on-year growth rate slowed to 7.6 percent in the second quarter, marking the first time since the fourth quarter of 2009 the country's economic growth rate has fallen below the 8 percent mark.
The People's Bank of China cut its benchmark one-year rate twice in June and July, as part of monetary easing efforts.