Based on the panel data of 30 cities in the middle of Yangtze River 2003 to 2012,this paper uses spatial econometric model to analyze the producer service industry agglomeration effect on the competitiveness of the manufacturing industry.Producer service industry agglomeration influences the competitiveness of the manufacturing industry from the aspects of pushing the manufacturing industry upgrading ,the promotion of manufacturing industry innovation and supporting manufacturing agglomeration .Empirical results show that producer services agglomeration has positive effect on promoting the com...