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China Manufacturing PMI Drops Back Into Triple-Dip Contraction, Lowest In 7 Months
Perhaps the collapse in oil prices does have something to do with demand after all? HSBC's China's Manufacturing PMI tumbled to 49.5 (missing expectations of 49.8), its lowest since May (and first contraction). This is the 3rd contractionary print in the last 2 years as HSBC notes "domestic demand slowed considerably," with only new export orders (to whom we wonder) improving. Employment slipped yet again as did output leaving HSBC no choice but to demand "further monetary easing," due to "rising disinflationary pressures, which fundamentally reflect weak demand."
Triple-dip contraction in soft-survey data...
as across the board the PMI components were weak... apart from new export orders?? To who?
Of course - you know what HSBC thinks this should mean:
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said: “The HSBC China Manufacturing PMI dropped to a seven-month low of 49.5 in the flash reading for December, down from 50.0 in November. Domestic demand slowed considerably and fell below 50 for the first time since April 2014. Price indices also fell sharply. The manufacturing slowdown continues in December and points to a weak ending for 2014. The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months.”
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China + Japan (now both in full blown economic contraction as measured in real terms) are leading the way in what is the next global economic crisis, although they'll be getting a huge assist from the EU (PIIGS+FUK), India, Russia, Brazil, Australia, Canada...and the U.S.
This is what happens when China boils its books, Japan goes Full Krugman Retard, and the U.S., UK and much of the EU block of Member States wipes out their middle class.
Retail massacre (brick & mortar AND e-tailers) appens like never before after this Christmas, then the historic real slam-down in equities, bonds and other credit instruments floated on a sea of CB liquidity follows.
So keep stacking Silver then.
This isn't fair. Now who is going to make our cheap Chinese shit?
A command economy looks a lot like Keynesian policy in action....
Welp... the Military of the region is alive and active despite the contraction of the 'real' economy.
http://hedgeaccordingly.com/2014/12/second-sas-commercial-flight-has-nea...
That should be good for another $2 Trillion of printed paper somewhere
What? I thought Russia and China were going to take over the world with their petro-trade agreement and now we're learning that one is on the doorstep of default and the other is in a triple-dip????? Blasphemy!
Mostly they are looking for a way for one to screw the other...
Except they don't have $18 trillion of debt hanging over their heads. Wait until they have to liquidate UST's to bail out their economy.
Me sooo Horny!!
No language change on Wednesday.
More and more we hear about how the economy of China is slowing. This should turn attention to their rather unique housing market. The importance of the housing market to China's economy should not be underestimated, this is where almost 75% of the country's household wealth is stored and it is deeply interwoven with shadow banking.
Most Americans know little about this market and just how key it is to their economy. A close look at housing in China and the customs under which deals are completed will give Americans some real surprises. Most bizarre is that legal protections and real estate standards are not yet well-established within the country. The various procedures and steps Americans take for granted when purchasing a property such as; due diligence, housing inspections, and secure escrow accounts simply do not exist. Below you can look deeper into the customs of this important market.
http://brucewilds.blogspot.com/2014/12/china-housing-market-customs-tad-bizarre.html