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China PMI Jumps To 2 Year Highs (Jobs Contract For 27 Months), Japan PMI Slips (Jobs Worst In 11 Months)
China's official manufacturing PMI beat expectations by the most since Nov 2013 and jumped to its highest since April 2012 - sure it did after all the forget-the-reforms liquidity, QE-lite, and local government spending dragged forward.
Perhaps worryingly the steel industry saw domestic and export new orders crater (from 55.7 to 48.2 in July). The employment sub-index fell once again (now in contraction since May 2012) as large enterprises dominated the upbeat report (medium and small clinging to 50.1 PMIs).
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Japan's PMI dropped for the first time in 3 months from 50.8 to 50.5 with output contracting and payrolls only marginally positive (slowest since August 2013).
Manufacturers in Japan reported a fall in output from a previous month of growth during July. That said, the rate of contraction was only fractional. According to panellists, the increase in the sales tax was still having a detrimental effect on production levels.
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And then to end the night, Markit/HSBC's China Manufacturing PMI drops from its Flash 52.0 to 51.7 - perfectly in line with the government's data.
Markit's data confirms the ongoing contraction in employment but new export orders surged by the most in 44 months (to whom?)
“The HSBC China Manufacturing PMI rose to 51.7 in the final reading for July, the highest since early 2013. This is slightly lower than the flash reading released earlier, as several sub-indices saw small downward revisions. Nevertheless, the economy is improving sequentially and registered across-the-board improvement compared to June. Policy makers are continuing with targeted easing in recent weeks and we expect the cumulative impact of these measures to filter through in the next few months and help consolidate the recovery.”
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While we know the trade data for China is still fake, we leave it to Diapason Commodities' Sean Corrigan to explain the 'discrepancies' that abound in the PMI surveys and hard data...
And why not when, pressured from above to ‘frontload’ their outlays, local government expenditures rose 16.4% year on year in the first half (and 6.1% in June alone) while basic tax revenues (i.e., receipts not including land sales) declined by around 4%?
Why not, again, when under the approach of ‘Every stimulus of a macro
import begins with a micro step’, the credit spigots were once more
liberally opened as the quarter wore on, to the point that June combined
the second biggest jump in M1 on record with a 32% yoy leap in ‘shadow’ finance (admittedly that latter calculated from a base which included last year’s quarter-end liquidity shock)?
In any case, 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.
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That can they keep kicking sure must have a lot of dents. Time for a new can?
<Or at least upgrade from a soup can to a number 10.>
Sure it did.
Why is our company getting inundated lately (last few months) by Chinese comapnies begging and pleading for our bare PCB business and assembly business. It has been a flood.
Too bad they make crap for the most part.
China communist totalitarian government can go fuck themselves. They are a bunch of fuck ups just like the communist Russians and will implode in the same glorious fashion. Aren't these people supposed to be smart? And building ghost cities? Yeah, that's fucking brilliant. Fuck you anybody can create 7% growth when you never have to sell what you build. I'm not impressed nor scared.
Silly goose. Those aren't Chinese ghost cities. They are (Chinese) FEMA camps where you will be moving in when China moves us out.
/snark........I think.
"Number of vacant houses hits record high (Japan)"
http://the-japan-news.com/news/article/0001461418
"The number of vacant houses, including units in apartment buildings, hit a record high last year of 8.2 million—a rise of 630,000, or 8.3 percent, from five years ago, according to a survey by the Internal Affairs and Communications Ministry.
Such houses account for 13.5 percent of the total number of housing units nationwide in 2013, also the highest.
The number of such dwellings has been increasing in line with the nation’s graying population and low birthrate, and have become a social problem from the perspectives of public security and disaster prevention."
With central planning fiat "money" do states even need jobs, or even people anymore? Really, they are such a pain, have their own barbaric ides that ruin the best and brightest of plans. They ruin everything and always want some of, and increasingly more of precious fiat credit, the scum!
Central Bankers of the World Unite!
/S
Whoops! http://finviz.com/futures_charts.ashx?t=HG&p=m5