**As seen in Risk In The Week report 08/25/23, subscribe at cablefxm.co.uk/reports
The China July manufacturing sector gauge rebounded to 49.3 from the prior 49.0, the figure topped estimates of 48.9 and translated into a 51.1 in the composite figure. The China composite PMI has now eased for the fourth consecutive month and is at the lowest level since December. According to the Chinese statistics agency, the weakness is more evident in small enterprises while large firms hold relative strength. The non-manufacturing PMI eased to 51.5 and came to miss expectations of 53.0, this continues the historical pattern where the deterioration/recovery in both sectors move in line. Analysts at ABN Amro noted that the reopening rebound in consumption and services has faded and that this is pared with the property sector distress, they added that the gap between the stronger services sector narrowing to the weakness in manufacturing. Economists at Wells Fargo said that they expect the softness to continue in August, as they have seen only a moderate monetary and fiscal policy response from authorities. Wells Fargo revised its China 2023 GDP growth rate forecast lower to 4.8% from a prior 5.2%.
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