Data on China’s manufacturing growth will likely show further slowdown in September

1-Oct-2018

A widely watched private survey of China’s factory activity is expected to show further slowdown in the manufacturing sector’s growth in September, as the country’s trade dispute with the U.S. escalates.

The Caixin Purchasing Managers’ Index for China’s manufacturing sector is expected to come in at 50.5 points for September, according to estimates by Reuters. That’s below August’s 50.6 points and the lowest reading since June 2017.

A reading above 50 indicates expansion, while a reading below that signals contraction. The Caixin PMI data is scheduled to be released on Sunday.

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

Before this week, both countries had already slapped tariffs on about $50 billion worth of each other’s imports.

The trade war with the U.S. has complicated China’s efforts to manage a slowdown in its economic growth after three decades of breakneck expansion. In addition to the moderation in manufacturing growth, the Chinese economy is also facing slowing investments and mounting debt.

Source: CNBC