(MENAFN) Amid China's economic weakness, its manufacturing sector operations is predicted to contract at its fastest pace in three years in August, thus the official manufacturing Purchasing Managers' Index (PMI) is likely to edge down to 49.7.
The predicted PMI level is the weakest since August 2012; moreover, a reading above 50 shows an expansion in activity while one below that indicates contraction on a monthly basis.
China's economy is headed for its slowest growth this year in a quarter of a century, all because of the factory overcapacity property downturn, weak exports and high local government debt.
"GDP grew 7 percent in the first half thanks to a booming services industry. But the (economic) situation will be difficult in the second half given the (poor) performance of the stock market," said an analyst in Shanghai.
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