Kevin Frayer | Getty Images
Workers at the Zhong Tian (Zenith) Steel Group factory in Changzhou, Jiangsu.
China reports official manufacturing Purchasing Managers’ Index (PMI) for August on Thursday at 9 a.m. SIN/HK.
A reading above 50 indicates expansion, while a reading below that signals contraction.
French bank Natixis said in a note on Wednesday that while consumption will buoy manufacturing, investment is “past its prime” and will track downward. A tightening in liquidity will also weigh, it said.
China’s manufacturing sector has been posting solid growth thanks to domestic infrastructure spending and a recovery in exports. That has mitigated some concerns about slowing growth and high debt levels that could derail the world’s second-largest economy.