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China Manufacturing PMI Explodes To 18-Month High, Employment Drops 9th Straight Month

Tyler Durden's picture




 

Having shown 11 awkward-to-explain charts of the Chinese economy, exposed the liquidity crisis that still lingers just under the surface, and exposed the "discrepancies that abound" in China's data, it was only right and proper in this new topsy-turvy normal that HSBC China Manufacturing PMI - after 8 months of missed expectations (but a very recent surge to the highest levels in 2014) - should smash expectations and surge to 52.0, its highest sicne Jan 2012 (and 2nd highest since the recovery began).

 

Despite this exuberant data...

Employment fell for the 9th straight month.

 

As an aside, this is the first time in 16 months that HSBC/Markit's PMI has topped the Government's official print (payback for a good IPO?) but we note below what has happened each time in the past that this has happened...

 

With Q2's massive 4x GDP growth surge in total social financing, and the huge 16.4% surge in local government spending in Q2 (6.1% in June alone) compared to a 4% decline in tax revenues; it appears the dragging forward of everything to ensure centrally-planned focused stimulus had the desired outcome has extended (for now) into July's preliminary data.

And just in case anyone gets too excited about what PMI means, here is what BofA research found: "In our view, these data get way too much air time. They give a timely, rough read on the economy, but should get little weight once hard data are released."

*  *  *

As we concluded previously, what is clear is that, taking the numbers at face value, debt levels are still rising with destructive rapidity in order to achieve even such spotty results as these.

 
 

Coming from the broadest perspective, Nominal GDP in the June quarter was an annualized CNY4.7 trillion greater than that of a year a year ago, but in that like period the stock of ‘total social financing' outstanding mounted almost four times as much, or by CNY17.7 trillion.

 

Chart: Bloomberg

 

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Wed, 07/23/2014 - 21:58 | 4996276 Freedumb
Freedumb's picture

The manufacturing boom in bullshit statistics is at an all time high

Wed, 07/23/2014 - 22:07 | 4996306 wee-weed up
wee-weed up's picture

WARNING:

Be on the lookout for more bloated pig carcasses coming floating down the river...

Wed, 07/23/2014 - 22:16 | 4996347 max2205
max2205's picture

This is SO bullish

 

Which one of those nunbers is actually real and correct

Wed, 07/23/2014 - 23:10 | 4996540 CheapBastard
CheapBastard's picture

I hear sales of those McDs Expired Beef Burgers are way down:

 

McDonald's and KFC in China sold expired beef and chicken: report

Read more: http://www.nydailynews.com/life-style/eats/mcdonald-kfc-china-sold-expired-beef-chicken-report-article-1.1874355#ixzz38LsDUG5F

 

 

Thu, 07/24/2014 - 00:13 | 4996690 wee-weed up
wee-weed up's picture

 

 

And you cannot be sure what they did with all those bloated pig carcasses...

"Sprinkrle rittle bit Szechuan spice... and engrish no taste difference!"

Wed, 07/23/2014 - 23:10 | 4996543 Dollarmedes
Dollarmedes's picture

China has abolished its southern border, and is now importing low-wage "undocumented Communists."

Wed, 07/23/2014 - 22:14 | 4996341 Diablo
Diablo's picture

Coincidently ZH failed to mention today the H1 gold statistics out of China. 

What happened to all those people lining up to buy gold Tyler????

LOL

 

Wed, 07/23/2014 - 22:35 | 4996409 I_rikey_lice
I_rikey_lice's picture

"Coincidently ZH failed to mention today the H1 gold statistics out of China. 

What happened to all those people lining up to buy gold Tyler????"

 

The answer is Hong Kong you twat.

Wed, 07/23/2014 - 23:08 | 4996533 Diablo
Diablo's picture

Of course it is. Keep telling yourself that and keep on stacking!!!!! and we'll see who keeps on laughing....you twat.

 

 

 

Thu, 07/24/2014 - 03:39 | 4997000 Bunga Bunga
Bunga Bunga's picture

Manufacturing numbers, BTFD!

Wed, 07/23/2014 - 22:01 | 4996290 The Most Intere...
The Most Interesting Frog in the World's picture

This is nothing more than a bunch of government debt financed fucking work programs. More ghost cities, more container ships, more missiles, more welfare programs more shit more shit more shit. Why didn't someone think of this a long time ago? Humanity has been suffering for no fucking reason... What a fucking joke....

Wed, 07/23/2014 - 22:03 | 4996300 TheRideNeverEnds
TheRideNeverEnds's picture

On the news e-minis exploded higher.   Sure they have feded back a bit but this means one thing for sure.  Machines are still set to buy; S&P 2000 by the end of the week.

Wed, 07/23/2014 - 22:07 | 4996314 robertocarlos
robertocarlos's picture

I thought China needed 10 million new jobs a month to break even.

Thu, 07/24/2014 - 00:35 | 4996770 wee-weed up
wee-weed up's picture

Not to worry... the ChiComs have hired crazy Joe Biden...

To brag about all the new jobs they've created.

Wed, 07/23/2014 - 22:20 | 4996354 Yen Cross
Yen Cross's picture

 At the end of 2008 China debt/GDP  was 147.00%. The current China debt/GDP is 251.00%. Anything coming out of China is complete horseshit!

Wed, 07/23/2014 - 22:39 | 4996435 NoDebt
NoDebt's picture

Why should they be any different than the rest of us?

My advice:  party on and don't worry about it.  When this all goes down, you'll need the memories of happier times to sustain you.

 

Wed, 07/23/2014 - 23:13 | 4996551 CheapBastard
CheapBastard's picture

"Debt is Glorious!"

 

Old Chinese Proverb attributed to the Ping Dynasty's Philosopher, Long Er Wong

Thu, 07/24/2014 - 00:09 | 4996712 Wild Theories
Wild Theories's picture

I liked the ft article you posted in the other thread, where it showed a chart even at 251% their debt/GDP ratio is still in the low-mid range of nations around the world.

Wed, 07/23/2014 - 23:19 | 4996573 Yen Cross
Yen Cross's picture

 Hey fonz, is the girl in article hungover or a vampire?  She looks like she's about 4 pints low on O-Negative.

 

Wed, 07/23/2014 - 22:43 | 4996455 Nutflush60
Nutflush60's picture

Does not paying QCOM royalties count in this number?

Wed, 07/23/2014 - 22:52 | 4996482 KnuckleDragger-X
KnuckleDragger-X's picture

Data as pure as the driven snow  by a government as honest as the day is long.... /sarc

Wed, 07/23/2014 - 23:07 | 4996529 TabakLover
TabakLover's picture

Inexplicably..............SP futes did not lap up this swill with a spoon.

Wed, 07/23/2014 - 23:47 | 4996654 Notsobadwlad
Notsobadwlad's picture

One has to wonder how it is that all of the governments seem to collude on the imortant things ... Onee would almost think that they are being directed by the same power.

Thu, 07/24/2014 - 02:17 | 4996902 Fuku Ben
Fuku Ben's picture

Waiter, I'd like an order of Milk and Chicken Jerky with both with extra Melamine to go along with those charts please

Thu, 07/24/2014 - 07:21 | 4997157 Tanz der Lemminge
Tanz der Lemminge's picture

Our company has been flooded with emails lately from Chinese PCB manufacturerers and PCB assembly companies begging for work. The emails are now about 3-4 per day.

Couple of days ago we had a call from one company - had a heck of a time explaining that we had no work for them.

Six months ago we might get one or two emails a month.

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