Factory activity in China is expected to have grown at its slowest pace in eight months, a Reuters poll showed, as previous stimulus fades and policymakers focus on tackling rising debt – a sign the cooldown in manufacturing will persist through 2017.
The manufacturing sector is also losing a tailwind from rising producer price inflation, which helped fuel strong industrial profits but is now coming off from more than five year highs.
The official manufacturing Purchasing Managers’ Index (PMI) is expected to come in at 51.0, which would be the lowest reading since September albeit the tenth straight month of growth, according to a median forecast of 30 economists in the Reuters poll.
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