China’s manufacturing growth improved in August as the nation’s auto sales rose 59 percent from a year earlier, according to reports that dampened concerns about a slowdown in the world’s second-biggest economy.

China’s economy is closely watched for its impact on supply chains. During this year’s first quarter, China accounted for 47.3 percent of U.S. containerized imports and 20.5 percent of exports, according to PIERS Global Intelligence Solutions, a sister company of The Journal of Commerce.

The China Automotive Technology & Research Center said car sales, aided by higher incentives from dealers, grew at more than three times July’s pace.

Two other reports showed Chinese production, new orders and purchasing prices rose in August.

The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index rose to 51.7 in August from 51.2 in July. The federation’s PMI readings have remained above 50, which signals manufacturing expansion, for 18 months since slowing in late 2008 and early 2009.

A separate purchasing managers index released by HSBC Holdings and Markit Economics rose to 51.9, its highest level in three months, from 49.4 in July. The PMI is a seasonally adjusted index designed to measure the performance of the manufacturing economy.

"This reconfirmed our long-held view that China is moderating rather than melting down," Hongbin Qu, chief economist for China at HSBC, said in the report.

China's economic growth slowed to 10.3 percent above a year earlier in the second quarter, down from an 11.9 percent first quarter pace, but strong export demand, domestic consumption and investment are still supporting steady growth, federation analyst Zhang Liqun said in a report. "The rise in the PMI for August shows that China's economy will not suffer a serious correction," Zhang said.

Source: JOC