China: Official manufacturing PMI to drop further to 51.1 in August - Nomura

Analysts at Nomura offer key insights on the official August manufacturing and services PMIs from China will be released on Friday at 0100 GMT.

Key Quotes:

“We expect the official PMI to tick down further to 51.1 in August from 51.2 July.

Despite the historical average showing a 0.2 percentage point (pp) increase from July to August, high-frequency data have slowed: growth of coal consumption by six power plants was 2.9% y-o-y in August from 11.2% in July; growth of crude steel production fell to 4.2% from 5.6%, while the national blast furnace operation rate was 66.4% from 70.2%.”