China’s factory activity is expected to have contracted for the seventh straight month in November amid sluggish domestic demand a Reuters poll showed, despite some optimism over chances for an interim deal to de-escalate a trade war with the United States.
The official Purchasing Managers’ Index (PMI) for November is expected to come in at 49.5, below the 50-point mark that separates expansion from contraction on a monthly basis, according to the median forecasts of 28 economists. The reading would be higher than October’s 49.3.
The continued downturn in manufacturing activity points to further weakness in the world’s second-biggest economy, fuelling expectations the authorities will have to roll out more stimulus measures to avert a sharper slowdown and job losses.
China’s full-year economic growth is expected to slow to 6.2% in 2019 and cool further to 5.9% in 2020, according to a Reuters poll, underlining growing challenges faced by Beijing even as it steps up stimulus amid the bruising trade war.