China: Trade war and weakening global growth to continue to inflict pain – RBS

Analysts at the Royal Bank of Scotland, points out that China’s ‘official’ manufacturing PMI stayed inside contraction territory at 49.5 in August.

Key Quotes

“The alternative PMI told a slightly different story, rising back above the 50-mark. But sustaining that looks challenging. Export orders slipped further into the contraction zone as the trade war and weakening global growth continue to inflict pain. And there’s more to come.”

“A fresh dose of 15% tariffs on roughly $110bn of Chinese imports came into effect on 1 September. This latest round falls more squarely on consumer goods, including footwear, clothing and some technology products. Ouch.”