China’s official Purchasing Managers’ Index (PMI) climbed to 51.7 in August from 51.2 in July – the lowest growth since February 2009 – supported largely by seasonal factors, Bloomberg reported. A figure above 50 reflects growth, but Citigroup said August’s PMI reading is typically higher than July’s. Domestic economic expansion has been retarded by a weak global recovery, which is dampening China’s manufacturing sector. "The PMI is trending down, in line with China’s slower growth, but it’s still growing," said Citi economist Ken Peng. "We will see more of the external effect through trade later." The European Union and the US, China’s largest and second-largest trading partners, respectively, are still suffering from the effects of the financial crisis with widespread spending cuts on both a fiscal and consumer level.
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