This page has been archived and commenting is disabled.

China Manufacturing Disappoints Expansion Expectation, Contracts For Second Month

Tyler Durden's picture





 

Following HSBC's PMI data, China's official Manufacturing PMI just printed well below economists' expectations and is now signaling contraction for the second month in a row. Critically the expectation was for a return to expansion at 50.1 but the data came at 49.8 - still marginally higher MoM. Most sub-indices improved modestly from August but of most interest was the fifth month-in-a-row that the employment index dropped. For all the iron-ore-recovery believers, the Inventories of Raw Materials index also jumped by its most in three months as Input Prices also surged for the second month in a row. So contraction confirmed, a CCP in 'leadership' turmoil, and a PBOC stymied by inflationary concerns and the need to push through structural reform.

 

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 09/30/2012 - 21:23 | Link to Comment max2205
max2205's picture

Let's concentrate on manipulated data instead

Sun, 09/30/2012 - 21:51 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

We are selling LOTS of el cheapo Chinese hub & bearing assemblies in Peru.  

Low prices, price matters in a poor country like Peru.  Precios Bajos, Putaz!

September was our biggest month ever, I am still working on the sales figures.  At some point, Peru will be affected by China's (and ours) slowdown.  But, it's not happening yet.

Sun, 09/30/2012 - 22:40 | Link to Comment dexter bland
dexter bland's picture

September usually a very strong month for China's PMI (despite being seasonally adjusted), typical 2% bump over August to be expected. That makes this print even weaker.

But there's always next month/quarter/year, and another one after that. It has to bottom out sooner or later...doesn't it?

Mon, 10/01/2012 - 09:32 | Link to Comment TruthHunter
TruthHunter's picture

DoChenRollingBearing:"We are selling LOTS of el cheapo Chinese hub & bearing assemblies in Peru"

So if South America wasn't hot, China would really be in the tank.

Sun, 09/30/2012 - 21:35 | Link to Comment JustObserving
JustObserving's picture

That's what happens when you sell 5 million iphones instead of 10 million that the analysts were predicting.

Apple also delays adapters:

 

Hundreds of loyal Apple customers are furious after the technology giant failed to release adaptors needed for the new iPhone 5.

The highly anticipated gadget –which sold five million units worldwide during the first weekend of its release on September 21 – has a new charging connector which is 80 per cent smaller than previous models.


The change means millions who rushed to buy the new phone at prices of up to $850 can no longer use existing accessories such as music systems and car chargers until they get a new adaptor.


http://www.dailymail.co.uk/sciencetech/article-2210707/Why-adapt-new-iPhones-Apple-release-dock-needed-connect-new-model-accessories.html#ixzz280UZNGeF 

 

Sun, 09/30/2012 - 21:31 | Link to Comment nmewn
nmewn's picture

"So contraction confirmed, a CCP in 'leadership' turmoil, and a PBOC stymied by inflationary concerns and the need to push through structural reform.

Structural reform?...ROTFL!!!

Sun, 09/30/2012 - 21:40 | Link to Comment Conman
Conman's picture

Here come the China easing rumors (again). Need more ghost cities and warehouse stuffing.

Sun, 09/30/2012 - 22:16 | Link to Comment chump666
chump666's picture

They eased last week, hence the Shanghai going parabolic.  But you'll notice the USD bids coming through, which is most probably out of China.  Which means that companies are still worried about inflation.

Total FUBAR mess.

 

Mon, 10/01/2012 - 00:01 | Link to Comment Conman
Conman's picture

Yup, doesnt stop algos from responding to every new easing rumor. Markets already calling for QEfinity+1! Its easy to spread the rumor for more China easing becuase "they have room to ease". Sigh.

Sun, 09/30/2012 - 21:42 | Link to Comment Surrealist
Surrealist's picture

Australian Manufacturing contraction picks up pace

 

Australian manufacturing contracted at a faster pace last month, as employment fell and new orders shrank for a seventh month, a private gauge showed.

The manufacturing index fell to 44.1 in September from 45.3 in August, the Australian Industry Group and PricewaterhouseCoopers said in a survey released today. A reading below 50 indicates a contraction.

http://www.smh.com.au/business/manufacturing-contraction-picks-up-pace-2...
Sun, 09/30/2012 - 21:57 | Link to Comment IndicaTive
IndicaTive's picture

Too tired to put on my shocked face.

Sun, 09/30/2012 - 22:11 | Link to Comment chump666
chump666's picture

China is a mess.

 

Sun, 09/30/2012 - 22:17 | Link to Comment Meesohaawnee
Meesohaawnee's picture

so if shorting is your game you go outside the us casino?

Sun, 09/30/2012 - 22:50 | Link to Comment q99x2
q99x2's picture

Numbers. Its a wonder that mathematics hasn't stopped working.

Sun, 09/30/2012 - 22:51 | Link to Comment CheapBastard
CheapBastard's picture

One Domino at a time.

Mon, 10/01/2012 - 01:25 | Link to Comment teahouse
teahouse's picture

if only we would really know what there is inside the belly of China, 

between non performing, loans, empty house and office, full subsidised industry, financial assets write off, etc, etc, etc...

the blow should be fairly big;

or altenatively...

WAR.

My 2 cents says: that USA will trade-off Japan with China; if China trades with USA, IRAN.

Do NOT follow this link or you will be banned from the site!