China factory growth at 3-month low

[BEIJING] Growth in China's vast factory sector slowed to a three-month low in August as output and new orders moderated, a preliminary private survey showed yesterday, reinforcing concerns about increasing softness in the economy.

The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 from July's 18-month high of 51.7, missing a Reuters forecast of 51.5.

It was the lowest reading since May, though the PMI stayed above the 50-point level that separates growth in activity from contraction for a third consecutive month.