The Conference Board Leading Economic Index(LEI) forChinaincreased 0.5 percent in August to 159.5 (2004 = 100), following a 0.6 percent increase in July and a 0.9 percent increase in June. Four of the six components contributed positively to the index in August.

SaysJing Sima, economist for The Conference Board: "The Leading Economic Index forChinain August points to continued expansion in economic activity, but at a slower rate in light of domestic monetary tightening and weakening global growth. Despite continued gains in the composite LEI this year, the main drivers of the upward trend, bank credit expansion and real estate investment, continue to slow compared to 2010. Meanwhile, the cooling of external demand fromthe United States, the Euro Area, andJapanmay be adding to slower growth."

The Conference Board Coincident Economic Index(CEI) forChina, which measures current economic activity, increased 0.5 percent in August to 207.1 (2004 = 100), following a 0.4 percent increase in July and a 1.3 percent increase in June. Four of the five components contributed positively to the index in August.

The Conference Board LEI forChinaaggregates six economic indicators that measure economic activity inChina. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.