New figures show that China's holdings of US government debt dropped to the lowest level in at least a year in June. The US Treasury said the Chinese government reduced its US Treasury bond holdings to $843.7 billion. But China remained the top foreign holder of US debt, followed by Japan, which held $803.6 billion in June, and Britain at $362.2 billion. China has repeatedly criticised the US for its growing debt levels, fearing that its investment in US government bonds could turn sour if a debt crisis erupts. Meanwhile, separate figures showed that a measure of US regional manufacturing rose in August after plunging the previous month, but it fell short of forecasts and contained some grim details. The New York Federal Reserve said its 'Empire State' general business conditions index increased to 7.1 in August from 5.08 in July. Despite this month's small rise, the index remains well below its recent high near 32 reached in April. The report is consistent with other recent data showing the US economy has slowed considerably in the past few months, though most economists say a double-dip recession remains unlikely.