This page has been archived and commenting is disabled.

SchrodinChina Expanding And Contracting At Same Time

Submitted by Tyler Durden on 06/02/2013 21:59 -0400

The Flash PMI had already 'warned' of a contractionary print but the final May HSBC Manufacturing PMI is now the lowest in a year at 49.2. The last two months have seen this measure of the Chinese economy plunge at its fastest rate since March 2011. Of course the 'official' data still remains a handsome 50.8 (not contracting at all) but the underlying data of the HSBC/Markit index is just as awful with little in the silver-lining camp to save the day (or night). Employment dropped, new export orders and total orders fell, purchasing activity fell, with only a meager rise in output saving the index from a more precipitous decline. Output prices also plunged (but input prices dropped on the back of cheaper raw materials - particularly base metals) and inventories rose (in a lack of demand manner as opposed to 'if we build it' perspective according to HSBC). So, once again, just as in Q1 2012 (before the reality swoon) China is both expanding and contracting...

- advertisements -

Sun, 06/02/2013 - 22:03 | 3619302 DirkDiggler11

Anyone get the sense that all hell is breaking loose over the entire globe ?

Sun, 06/02/2013 - 22:09 | 3619308 Surrealist

Yep it's just slow for the time being. Whether there exist any harboring panic from central bankers is not clear as they do very well at hiding it, but some of their policies seems to suggest it is apparent, particularly Japan.

Sun, 06/02/2013 - 22:14 | 3619314 prains

http://anonymousmonetarist.blogspot.ca/2009/09/ski-jumping-with-hair-of-...

for the pic

Sun, 06/02/2013 - 22:35 | 3619368 Non Passaran

I've had the feeling a bunch of times since 2009. And everything is still (more or less) fine.
Right now I would most like eurozone to descend into utter chaos again :-)

Sun, 06/02/2013 - 22:06 | 3619306 ekm

Each time you see HSBC think money laundering.

I bet chinese elite are funnelling their millions out through HSBC.

Conclusion: Do not believe anything HSBC says. It's either at par or worse than official chinese data.

Sun, 06/02/2013 - 22:20 | 3619323 Dr. Engali

I had this same exact conversation with my dad today. It started with Wachovia and ther money laundering activities and went on to HSBC. They are all filthy dirty yet people still listen to them.

Sun, 06/02/2013 - 23:40 | 3619511 cash_for_tungsten

China PMI is nothing more than fake data for people to frontrun and insider trade. It's a beautiful racket, moves the shit out of the markets every time and the securities laws over there are even more pathetic than the states. There's even two versions, one for the state employees and the other for wealthy HSBC clients (but only after their deposit-funded hedge fund gets to trade first).

Sun, 06/02/2013 - 23:47 | 3619518 MythicalFish