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Chinese Economy Enters Contraction With First Sub-50 PMI Print Since October
For the first time since October 2012, HSBC's China PMI (Flash) printed at a sub-50 level (49.6) missing expectations (50.4) quite notably. This is the worst two-month drop in 17 months. This is problematic for the PBoC who are being arbitraged left, right, and center and know that any stimulus will merely serve to exacerbate the problems they face (as we noted here that China simply cannot function with 'moderate' growth). Every one of the main index's 11 sub-indices is signaling 'problems' - from slower rates of output, slower new orders, employment dropping at a faster rate, stocks rising, and output prices falling. As HSBC notes, "The cooling manufacturing activities in May reflected slower domestic demand and ongoing external headwinds. A sequential slowdown is likely in the middle of 2Q, casting downside risk to China’s fragile growth recovery." Of course, none of this should come as any surprise to ZH readers - as we noted here, Chinese power consumption grew at its slowest rate since May 2009.
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Collapse... look out below!
But max, honey bunch, look at all those cute little homes sitting empty!
But wang , honey bunch, look at all those cute giant cities sitting empty!
There fixed it for you knukles.
So many cities, so few people.
The NORK Dear Leader feels a crazy spell coming on...
China could handle a collapse better than the USA could. There, not as many in the cities living pampered lives as those in the villages outside. Also, there are neighbors to invade for resources if it comes to it. I'd be more worried about the USA, frankly. They're convinced they can turn off the $85 Billion-a-month spigot and "taper" off.
Right, like how a heroin addict "tapers" off of smack.
As long as our Chinese bearing supplier keeps cranking out the cheap but decent pieces for our customers in Peru, we will be buying them. Same for our Korean and Japanese suppliers.
American supplier? They don't even want to sell to us. OK...
I think it's high time we got back to fundamentals ZHers...
"Fuck You Bernanke"
Gold bitchez!
+ $55,000
And that helps to solve Jim Quinn's issues re saving for our kids...
A ton!
So Japan can't save us. The U.S. can't save us. Europe can't save us. Japan...well we know how fucked the are. Zimbabwe it's all up to you now.
Zimbabwe is enough to Obama's Kenya.
http://www.youtube.com/watch?v=xx3-MGHFXkc
But I thought things were 'peaches and cream' in Europe and U.S., and I thought China has rubust internal demand/consumption?
List of the largest trading partners of China - Wikipedia, the free encyclopedia
China needs to devalue MOAR and QE now
M. O. A. R
devaluing gold is hard, unlees you are nixon. but lord knows thats not what he got impeached for, in his defense clinton didn't get impeached for nafta...
benny with a stick save?
B-B-B-Benny and the Jets...
Elton John on SoulTrain circa 1975 (good shit), but if you look close, I think you can see Barack in the peach leisure suit and afro, getting down in the background. Umm.. Good Times.
http://www.youtube.com/watch?v=8vLlpJc9mW0
thats not the choom wagon.
Stick save will turn out to be a ram-rod. Bend over and get ready.
I wonder if I will find Chinese Deflation talk as exciting as Japanese Deflation talk
so given that they lie about everything, what to make of this?
I am a liar - everything I tell you is a lie.
a lesson i learned a long time ago, when you realize someone is a liar you don't need to ignore them, you need to consider everything they say a lie. some of the things they say will be the truth, but it will only be to support the lies.
Copper shit the bed and lumber is heading for another limit down.
Pretty much. Funny how the media doesn't cheer lower costs actually. Must be their huge paychecks...
and of course all of asia ( rightfully so) is in the red except for the biggest bubble on the planet, the 1 that makes the dow and s&p look rational, none other than the nikkei up 220 pts, or 1.30 percent on china contracting.
very scary how even the''great china'' is contracting.
but cramer told me they bottomed out, as did europe so everything is going to be ok
No worries: We'll frack our way out of deflation
The Nikkei futures have been dropping like a felled ox during their lunch break. It doesn't look all that rosy now.
but abe was massaging my expectaions on my lunch break.
abe is bald with a beard and lies cumming from his lips when he speaks, right?
one chart to rule them all
No worries, the government will still say GDP grew 7.5% this year.
I haven't seen anannoyingpuss post for a while. Did he/she/it get the boot for breaking the new HR rule?
No, he's still here.
How could you fail to see the good news? China's heading toward a Goldilocks economy! Oh wait a minute: who we gonna export inflation to now?
Chinese economy enters contraction? Chinese ECONOMY? Oh, the financial sophisticates of Zerohedge!
After the US consumer was FINISHED then the 1 billion middle class Indians and Chinese were supposed to take on the burden of consumption. Not happening. Death spiral.
It's a real shame when the multi-nationals' plan totally and completely fails isn't it? /sarcasm.
It would be interesting if ZH can investigate how much of Chinese economy went into black market, where transactions now are done in gold, cash and diamonds and true financial statements are being underreported by large number of businesses.
I would be eager to read when the research is completed. May be we will see the true picture of the Chinese economy "Real GDP" + "Shadow GDP".
This may even answer the question where did all that physical gold go.
Isn't that currency peg wonderful! Dollar depreciates, inflation in China. Dollar appreciates, deflation in China. What a wornderful thing!
The Chinese tried to tell the British not to fix the pump hundreds of years ago. Now see what they've done.
Ugly.
Haven't they been "stimulating" their economy longer than anyone else? If they are pegging their currency to the buck then they must be printing at a rate equal to or higher than Uncle Sam. No?
And the idea that anyone is going to replace the American consumer is faulty. Chinese and Indians have to save their excess cash for a rainy day because the social safety net is not there. They don't have the same access to ridiculous amounts of credit. And they are not stupid enough to believe that debt doesn't matter.
Money and savings are freedom. Debt and a bunch of crappy possessions that you have to look after drag you down.
Not that long ago I said:
http://www.zerohedge.com/news/2013-05-12/eric-sprott-golden-answer-chine...
"I'll take it China is about to sneeze again, means winter in Australia is going to be very cold."
It certainly has gotten colder these last few days, wetter also though I have no idea how that applies to finance. =S
edit
Of course that is based on data that has been 'massaged' (manipulated, surely not /sarcasm ) and thus as real as the pair of 'assets' on the figure in the Chinesewomendate ad =P
The medium is the massage! ;-)
Here come the NPLs....
http://nipponmarketblog.wordpress.com/