BEIJING, Aug 30 Reuters China39;s factory activity likely shrank for a fourth month in August, a Reuters poll showed on Friday, reinforcing the need for officials to direct more stimulus towards households and less to building projects.

The official purchasing managers39; index PMI was forecast at 49.5, up from July39;s reading of 49.4, according to the median forecast of 24 economists in the poll. The 50point index mark separates growth from contraction in activity.

The 19 trillion economy started the second half of the year on a shaky footing, with dismal exports, prices and bank lending indicators for July showing demand losing steam.

The recovery most analysts had expected following China39;s lifting of its strict COVID curbs in 2022 has so far eluded the world39;s secondlargest economy.

Beijing last month signalled it was ready to deviate from its usual playbook of pouring funds into infrastructure projects.

There have been some green shoots with retail sales topping forecasts last month.

But more specific details on how China plans to reinvigorate the 1.4 billionstrong consumer market remain to be seen, with officials so far only pledging to focus on boosting consumption to expand domestic demand.

Weighing heavy on consumer spending has been a bruising slump in the property sector over the past three years.

With 70 of household wealth held in real estate, which at its peak accounted for a quarter of the economy, consumers have kept their wallets shut tight….