China's Factory Activity is Expected to Show Further Slowdown in September

Forex News

China releases the official PMI survey on Sunday, along with a similar official survey on services, and the private Caixin manufacturing PMI. The Caixin services PMI will be published on October 8. Analysts forecast, that China's manufacturing sector will slowdown in September after taking a pause in August amid escalation of the US-China trade war.

It is projected, that the official manufacturing Purchasing Managers' Index (PMI) will fall to 51.2 in September from 51.3 in August. Separately, a private survey on China's factory activity is forecast to show a similar mild easing trend. The Caixin Purchasing Managers' Index for China's manufacturing sector is expected to come in at 50.5 points for September.

Trade tensions between the world's two largest economies escalated again this week. President Donald Trump's administration levied tariffs on an additional $200 billion of Chinese goods on Monday, while the Chinese government retaliated by targeting roughly $60 billion worth of US imports.

The US trade tariffs put pressure on China's already slowing economy, and policymakers in recent months have sought to boost lending to businesses, cut taxes and fast-track big infrastructure projects.