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The
official purchasing managers' index (PMI) is expected to have
edged up to 50.0 in September from 49.7 a month before,
according to the median forecast of 24 economists in a Reuters
poll.
The highest projection was a reading of 50.6 and the lowest
49.8. An index reading above 50 indicates expansion in activity
on a monthly basis while below that signals contraction.
Policymakers have announced a slew of steps in recent months to
shore up growth. These include reducing the amount banks must to
hold in reserve, cutting mortgage rates, as well as 31 measures
to support the private sector.
But analysts say more policy support will be needed to ensure
the economy reaches Beijing's annual growth target of about 5%.
China's factory output and retail sales grew at a faster pace in
August, while declines of exports and imports narrowed and
deflationary pressures eased.
But tumbling investment in the crisis-hit property sector
continues to threaten prospects for the economy's recovery. New
home prices fell at the fastest pace in 10 months in August and
property investment declined for an 18th straight month.
The Asian Development Bank last week trimmed its growth forecast
for China to 4.9% from 5.0% in July due to the weakness in the
property sector.
The PMI, which largely focuses on big and state-owned firms, as
well as a survey for the services sector, will be released on
Saturday.
A separate private-sector survey, the Caixin/S&P Global
manufacturing PMI, is due on Sunday. Economists have forecast
that will come in at 51.2 for September, up from last month's
reading of 51.0.
(Reporting by Joe Cash; Polling by Veronica Khongwir and
Milounee Purohit; Editing by Edwina Gibbs)
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