China's PMI expands for a fifth month

China’s manufacturing sector expanded for the fifth straight month in July as record bank lending and Beijing’s US$586 billion stimulus package strengthened the country’s economic recovery, Bloomberg reported. The official Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 53.3 in July from 53.2 in June, the Federation of Logistics and Purchasing said. The PMI hit a record low in November 2008 with a reading of 38.8. A reading above 50 indicates expansion.  The governor of the People’s Bank of China, Zhou Xiaochuan, said the government would track US economic policy when deciding when to end its economic stimulus. "The recovery is very strong," said Wang Tao, an economist with UBS. "But it’s not yet stable, because it’s all stimulus driven." Analysts also worry that "blind investments" may be adding to overcapacity in some industries.