August witnessed the continuation of recovery in China's manufacturing sector, suggest two separate monthly surveys.

A rise to a 16-month high of 54 points was seen in China Federation of Logistics and Purchasing's purchasing managers' index in August, a hike from 53.3 in July.

It should be noted that this was the sixth month of expansion, with any figure above 50 indicating growth. Meanwhile, the factory output is growing due to the government's stimulus spending.

"First launched in November of last year, Beijing is spending $586bn (£370bn) between now and the end of 2010 on housing and infrastructure projects across the nation, and post-earthquake reconstruction in the south west of the country," said the one of the monthly survey.

Furthermore, an upturn in export orders has also benefited China's factories and the global economy is coming out of the recession.

Meanwhile, an increase to 55.1 was seen in HSBC's index of manufacturing output in August from 52.8 in July, its fifth month of growth.