Even with the Shanghai stock market sell off, China's PMI shows continued improvement.  According to the latest release, China's PMI was 54.0% in August.  A reading above 50 suggests expansion, while one below 50 indicates contraction.

The index has stayed above 50 for 6 consecutive months.  The latest reading shows significant increase after three month of small variations. Except suppliers' delivery time, all the other measures showed improvement compared with July.

Results from the previous several months means that the foundation of China's economic recovery has got more and more stabilized.

Zhang Liqun, a researcher with the Development Research Center of the State Council, says that results from the previous a few months show that the PMI has been a good indicator and the August number signals China's economic recovery in on solid footing.

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