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China Composite PMI Employment Drops At Fastest Pace Since Feb 2009
After last weekend's schizophrenic expanding (official) / contracting (HSBC) Manufacturing PMI, China's Services PMI printed at 50.7 - its lowest since August 2011, as the business expectations index dropped to an 11-month low. The Composite PMI improved (after 3 months of contraction) but most notably, the composite employment declines at the fastest pace since Feb 2009. What is perhaps most worrisome is, as Markit notes, "The latest survey signalled the second-weakest degree of optimism since the series began in November 2005."
Subdued client demand and an uncertain economic outlook weighed on service sector confidence towards the 12-month business outlook in May.
The latest survey signalled the second-weakest degree of optimism since the series began in November 2005.
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“The headline HSBC China Services PMI moderated to 50.7 in May, down from 51.4 in April. Latest data signalled a relatively big drop in the business expectations index, which fell to an 11-month low of 58.1, down from 60.7 in April. Both the new business and outstanding business indices were slightly weaker than April. The employment index, unchanged over the month, remained at a relatively low level. Coming after the stronger Manufacturing PMI reading for May, the slight disappointment in the headline Services PMI suggests that growth momentum remains slow and private sector sentiment is weak.
We think policy makers should continue to ease monetary and fiscal policies in the coming months to help support growth.”
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Why isn't China lying on their reporting
How much more easing...err, monetization...is even possible here?
Who says they aren't? Its possible its a lot worse than they are letting on. They have some pretty big bets on the table that they can't afford to see go bad right now.
Ah yes, the universal panacea, with no unintended and/or negative consequences: "easing".
Easy!
Winning! Boo Yaa HSBC!
They are to busy looking for their copper
On the phone to Qingdao now. My warehouse manager assures me there is a "veritable bounty" of commodities there. He's willing to ship tomorrow for a nailgun today.
Everything is magically above 50. Fancy that.
And GDP growth shall not be reported at less than +7.0%.
Explains why the S&P is a full two points off of all time highs. I am not worried though, if we are up less than 25 points tomorrow on the news it will be a let down. Whatever the news is it wont matter one way or another we are going higher.
Might have to buy some GBP and AUD puts. " Can't own the stock in curencies?" I hear the glass breaking.
Dim Sum Yen just shorted usd/jpy. Target 1/2 rice cakes (200-h4)
Best of luck Yen ;-)
Ebbie I've been out of the loop. ( I think the world of you Ebbie)
It's amazing how 1 or 2 fortnights from Z/H changes things. The kids learn so fast, but are so niave.
There is a very good reason for the "old" meaning of "Mongoloid".
Good Lord! Don't be dissing Timmah
Signed,
Mongoloid-Retard
Lol! Truly lol worthy!!!
So glad I wasn't taking a drink when I read that!
Ha!
Anything to deflect the question. Spoken like a true wanabe poet.
They probably are lying. The bubble that popped in China was 10x worse than the housing bubble we just had.
"'They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD's wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin. - Ezekiel 7:19