China’s Official PMI Drops To 51.1 In August

China’s official manufacturing purchasing managers’ index (PMI) declined to 51.1 in August from 51.7 in July, slightly lower than market expectation, according to data released by China’s National Bureau of Statistics.

The new order index dropped by 1.1 percentage points to 52.5, which leads the overall 0.33 percentage point decline of the overall PMI number.

The effect of the Chinese government’s "mini stimulus" measures seems to fade fast. The extremely weak credit data in July and continued sluggish property market are the major reasons for deceleration of growth, according to a report by ANZ.

ANZ predicts that the authorities will cut reserve requirements ratio to lower the risk of failing to deliver the growth target of 7.5%.

BofA Merrill Lynch expects that China will be able to achieve an "around 7.5% growth objective" as the government steps up its stimulus efforts in the coming months.

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