China’s manufacturing sector posted a strong recovery in August, offering further signs that the world’s second largest economy is walking out of the shadows of protracted slowdown, official figures showed today.

The purchasing managers’ index (PMI) for the manufacturing sector rose to 51.0 per cent in August from 50.3 per cent in July, marking the second monthly expansion in a row, and the highest reading this year, according to China Federation of Logistics and Purchasing (CFLP).

The index tracks manufacturing activity in China’s factories. A number below 50 indicates contraction, while figures above it points towards expansion.

The 70 basis points expansion also represents the biggest increase since January.

In the months prior to August, the data had swayed back and forth, state-run Xinhua news agency reported.

Zhao Qinghe, a senior statistician with the National Bureau of Statistics (NBS) said, new data shows the manufacturing activities have stronger growth impetus, and the economy is firming in a more evident way.

The positive PMI numbers were being projected as signs of the halt of a slowdown of the economy which contracted to 7.5 percent in Q2.

China’s GDP grew 7.8 per cent in 2012, weakest result since 1999.

Growth in the first quarter of this year dipped to 7.7 per cent from 7.9 per cent in the final three months of last year and slowed further to 7.5 per cent in the three months through June.

Same like 2012, authorities are targeting 7.5 per cent growth rate in 2013.

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