TD Securities analysis team is expecting a decline in China’s official manufacturing PMI to 49.5 in August from 49.7 in July, which would mark the fourth consecutive month of contraction.

“The intensification of tariffs from both US and China will have served to hit manufacturing sentiment further. Indeed Chinese companies will be reeling from the US announcement that it will move forward with tariffs on almost all remaining imports. The subsequent delay of additional tariffs to December 15 as well as CNY weakness will have done little to mitigate the intensifying pressure on manufacturers as the economy continues to slow.”