A widely accepted indicator of manufacturing activity in Chine declined to its lowest level in nine months in the month of August as the economic slowdown continues in the world’s second largest economy.

China’s purchasing managers' index (PMI) fell to 49.2 in August from 50.1 in July, according to the latest data released by the China Federation of Logistics and Purchasing and the National Bureau of Statistics.

Experts say that a reading above the mark of 50 indicates expansion of the industry while that below 50 shows contraction.

The rating of 49.2 in August is the lowest since the country recorded 49.0 in November of 2011. Dow Jones Newswires conducted a poll of economists and had estimated a median forecast of 50.0 for the month of August. HSBC’s purchasing managers' index for the country was expected to be 47.8 for August as per the initial estimates. The UK banking giant is scheduled to release final PMI figure for August on Monday.

The economic growth in the country was recorded at 7.6 percent in the second quarter till June 2012, which is much higher than growth rates of most western economic powers, but is the low for the country. The figure of 7.6 percent during the quarter is the lowest in three years.