OREANDA-NEWS. September 07, 2012. The Purchasing Managers Index (PMI) of China's non-manufacturing sector, a key economic indicator, rose 0.7 percentage point to 56.3 percent in August, new survey results indicate.
 
The figure rebounded after a slight fall in July as growth in the non-manufacturing sector stabilized, according to data released by the China Federation of Logistics and Purchasing (CFLP) on Monday.
 
A PMI reading above 50 percent indicates expansion from the previous month, while readings below this mark indicate contraction.
 
CFLP Vice Chairman Cai Jin said, "The rebound shows the non-manufacturing sector has played a more significant role in stabilizing economic growth."
 
"The recovery in the consumer service sector and dynamics of the information service industry have been building up a solid foundation for stabilized growth," Cai said.
 
The figure followed Saturday's release of the PMI for China's manufacturing sector, which grew at its slowest pace in nine months to 49.2 percent in August.
 
In August, the sub-index for new export orders in the non-manufacturing sector hit 49.6 percent, up 0.2 percentage point from the previous month, the CFLP data shows.
 
The sub-index for intermediate input prices climbed 7.9 percentage points to 57.6 percent, while that for charges rose 2.5 percentage points.
 
"On the one hand, the rebound in the two sub-indices shows that economic activity is picking up. On the other, it also serves as a reminder of rising imported inflationary pressures due to rising global grain and crude prices," Cai said.
 
The sub-index for employment gained 0.3 percentage point month on month to hit 51.7 percent, while that for business activity expectations in August fell 0.7 percentage point to 63.2 percent.
 
To bolster the flagging economy, the country has introduced a slew of pro-growth measures, including more aggressive tax reductions, issuing subsidies to support enterprises' technology upgrades and opening state-run sectors to private investors.
 
Premier Wen Jiabao said in late August that China's recent fine-tuning policies, especially those created since May, have produced noticeable effects in boosting market confidence and lifting the economy.
 
The CFLP's non-manufacturing PMI is based on a survey of about 1,200 companies in 27 industries, including transportation, real estate, catering and software development.