China’s flash manufacturing purchasing managers index (PMI) came in at 50.3 in August, down from 51.7 in July. The reading is a three-month low.
"Today’s data suggest that the economic recovery is still continuing but its momentum has slowed again. Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path," says HSBC chief China economist, Qu Hongbin.
"We think more policy support is needed to help consolidate the recovery. Both monetary and fiscal policy should remain accommodative until there is a more sustained rebound in economic activity," he adds.