China's Manufacturing Activity Is Forecast To Slow
China will publish official PMI survey on Friday, along with a similar official survey on services. The private Caixin manufacturing PMI will be published on September 3, and the Caixin services PMI on September 5.
The private Caixin/Markit Manufacturing Purchasing Managers' index (PMI) is expected to have fallen to 50.6 in August from 50.8 in July. Analysts also expect, that the official manufacturing Purchasing Managers' Index (PMI) will fall to 51.0 in August from 51.2 in July.
China's manufacturing industry has been growing for two years but is now facing a triple threat (higher borrowing costs, cooling investment and consumer spending and a potential export shock). Meanwhile, exporters faced rising uncertainties from the escalating trade war with the United States.
China's economic growth slowed slightly to 6.7% in the second quarter. Meanwhile, Beijing has set the official 2018 growth target of around 6.5%. Chinese government aims to speed up infrastructure investment to stabilize growth.