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China Manufacturing PMI Drops To 8-Month Lows, Teeters On Brink Of Contraction
From exuberant credit-fueled cycle highs in July, China's official Manufacturing PMI has done nothing but drop as the hangover-effect from the credit-impulse weighs once again on the now commodity-collateral crushed nation. At 50.3 (missing expectations of 50.5 for the 2nd month in a row), this is the lowest print since March. All 5 components dropped led by notable weakness is outout and new orders (new export orders biggest MoM drop in 17 months) with medium- and small-enterprises heading deeper into contraction (at 48.4 and 47.6 respectively) as the Steel industry PMI craters to 43.3. Japan's PMI dropped marginally to 52 and then HSBC's China Manufacturing confirmed the government data and flash reading with a 50 print - the lowest since May as New Export Orders growth slowed for the 2nd month.
And HSBC China Manufacturing at the lowest since May
Of course, this weak data is great news...
“The HSBC China Manufacturing PMI fell to a six-month low of 50.0 in the final reading for November, down from 50.4 in October and unchanged from the flash reading. Domestic demand expanded at a sluggish pace while new export order growth eased to a five-month low. Disinflationary pressures remain strong while the labour market weakened further. Today's data suggest that the manufacturing sector lost momentum and point to weaker economic activity in November. The PBoC's rate cuts, delivered on the 21st November, will help to stabilise property and manufacturing investment in the coming months. We continue to expect further monetary and fiscal easing measures to offset downside risks to growth.”
* * *
Then it was Japan's turn as its PMI fell slightly, remaining oddly flat around 52 for the last 4 months - “However, the outlook for Japanese goods producers remains uncertain amid the weakening currency, the postponement of the planned sales tax increase and the upcoming election.”
But of course - it wouldn't be Japan if the nations leaders were not spewing utter bullshit once again...
- *HAMADA SAYS ABENOMICS HAS BEEN SUCCESSFUL
- *HAMADA: ABENOMICS'S 1ST, 2ND ARROWS ARE WORKING FINE
- *HAMADA:JAPAN ECONOMY EXPECTED BE BACK TO NORMAL IN 1-2 QUARTERS
Unbelievable!! The economy is imploding and still they are 'allowed' to utter this tripe in what appears a total lack of financial media attention to facts.
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PMI At 50.3
Now if we could only trust China's economic numbers. It would be no surprise if the real PMI is 10% to 30% lower
QE 4 EVA
Hang Seng no likey. Then again, many things are hitting the ChiCom newswire tonight...
China Prepares for a Domestic Banking Crisis; Soon to offer FDIC type InsuranceThe Head Commie Honcho of Hong Kong just said earlier tonight in a presser (press conference) that the HK economy is starting to suck wind. And it's the result of the Occupy demonstrations.
Uh huh.
Just like US retail sales last few days are lagging due to a good economy.
This 24/7/365 Perceptions Management is Getting Rather Weary
Xi
China is the big guy
http://www.nytimes.com/2014/12/01/world/asia/leader-asserts-chinas-growi...
Guessing chinese PMI is always a challenge. No one knows the real numbers except the inner circle of the communist party. Even Premier Li laughs at his own country's numbers.
Gordon Chang of Forbes thinks real growth is only about 3 to 3.5% for the last few yrs. He's pretty accurate in his estimates.
In Japan, the econ is slow & you can can see people dragging their feet to work this Monday morning in heavy rain. The spirit is pretty low. Even the US was not this bad in 2008.
If China is having a financial slowdown and thus the US has a slowdown, here is what to do.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Thanks
The chinese are clutching at fortune cookies, just one rung up from Uncle Fed.
Fear not comrade bitchez! Moar QEasenomics to come!
Bullardish?
PMI near 50 - one thing is certain, it's a lot worse than 50
communist douche bag liars
Talking about the fed?
Fungible Commodities, much like Neo-Keynesian economics and dog shit
Gotta understand that the believers of Neo-Keynesian economics are by and large of the very same gullibility as those who fell for Obie's acceptance speech with the Styrofoam Doric pillars in Denver.
Great last efforts
No surprise here, Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured massive amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need.
Now China finds itself in a credit trap. For years the people of China have had the habit of saving much of what they earn but the low interest rates paid at banks has not rewarded savers. With few investment options much of this money has drifted towards housing and driven housing prices sky high. The economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be very painful. More in the article below.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
Yet another centrally planned disaster
Liquidity not "credit trap."
Deflations are historically "Abbie normal." Abbie surd at a certain level too.
China hurting is bad, mmmk?
There goes China. They'll have to knock down all theose ghost cities and rebuild.
USDX starting to slip.......... have we hit the top?
An export model with a vendor financing gimmick now suffocating under domestic debts. The global economy is not obliging to let them get their act (reforms) together.
Hence, political stability fast creeping to be a priority over the economy. Watch them kicking cans down the road with possibly their variant of money printing targetted at sectors to contain unemployment , etc administered through a "command and control" structure.
What deforms you see in the US and EC economies this is just the Asian strand.
Interesting time ahead and not forgetting the spill-overs to those fabulous Asian EM economies.
Perfect opportunty to buy the dip. You know as well as I do that there is next to zero chance they are not at least unchanged by some point tomorrow and we will probably close out 2014 100-150 points higher than current prices on the S&P.
BTFD. Chinese lie like a rug. Markets have been completely fake since the end of 2011. BTFD
Oh no! The Swiss referendum failed! Gold will be crushed!
Meanwhile, back at the ranch:
$1179.57 +12.22 +1.05%
Ditto for silver........but no manipulation here! ....nothing to see. You can now all return to your regular cyber Monday shopping duties as all is well. /s
The PMI is kind of stuck around 50 since 2013. This proves these numbers are rigged. The PMI should be much more volatile.
That's why they're moving to Beverly Hills......swimming pools movie stars
http://newworldorderg20.wordpress.com/2014/12/01/chinas-largest-cinema-chain-puts-hq-in-beverly-hills-swimming-pools-movie-stars/
America and its failed economy would love to have half of China's growth.