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China Manufacturing PMI Confirms Contraction, Employment Drops For 14th Month In A Row
With Steel output down 3.4% YoY (worst in over 2 years) and Cement output down 4% YoY (worst in 7 years) it should not be entirely surprising that the Final December HSBC Manufacturing PMI for China slumped to a contraction-implied 49.6 (a small blip up from the 49.5 preliminary print) and down from 50.0 in the previous month. This is the first contraction since April 2014 after the credit-impulse of Q2 comes back to bit in the hangover. New orders fell for the first time since April but the employment sub-index contracted again for the 14th months in a row. Market reaction is modest for now, China stocks lower and USDJPY fading.
Lowest Manufacturing PMI in 8 months:
Some of the more disturbing findings in the report:
The weaker PMI reading was partly a result of a renewed fall in new business volumes placed at Chinese manufacturers in December. Though only slight, it was the first reduction in new orders since April. Data suggested that the decline was largely driven by softer domestic demand
- As a result of lower overall new business, manufacturers cut production for the second successive month in December.
- Manufacturing employment in China declined again in December, thereby extending the current sequence of job shedding to 14 months.
- Lower production requirements led to the first reduction in buying activity since April, albeit only slight.
- Average input costs faced by Chinese goods producers fell for the fifth month in a row during December. Moreover, the rate of reduction accelerated to the sharpest since March.
Commenting on the China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“The HSBC China Manufacturing PMI fell to 49.6 in the final reading for December, down from 50.0 in November. As seen in the flash reading earlier, domestic demand led the slowdown as new orders contracted for the first time since April 2014. Price contraction deepened. Today's data confirmed the further slowdown in the manufacturing sector towards year end. We believe that weaker economic activity and stronger disinflationary pressures warrant further monetary easing in the coming months.”
Translated: Help!! Don't leave us alone with this economy (and our massive levered speculative longs)!!...
Chart: Bloomberg
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“China is poised to become a net capital exporter for the first time, with total overseas direct investment exceeding foreign direct investment by the end of the year, said Zeng Peiyan, chairman of the China Center for International Economic Exchanges, at a forum on Sunday.”
This is good news no? Well then, DOW will be 18,650 this week!! YEAHH!!!!
sarc off//
my roomate's half-sister makes $65 /hr on the computer . She has been without work for 7 months but last month her pay check was $14940 just working on the computer for a few hours. you could try this out... www.works3.com
my roomate's half-sister makes $65 /hr on the computer . She has been without work for 7 months but last month her pay check was $14940 just working on the computer for a few hours. you could try this out... www.works3.com
my roomate's half-sister makes $65 /hr on the computer . She has been without work for 7 months but last month her pay check was $14940 just working on the computer for a few hours. you could try this out... www.works3.com
Is she making amateur porn moves or live porn stream?
Well I have several really perverted ideas.
How can this be? They still have millions of acres they can build cities on....
They admit .1% therefore it's safe to say the real number is north of 10%
"sustainable" is to "growth" as _________ is to "chicken"
Headless?
or
Imaginary?
No, No,
Soup?
Sustainable
From the perspective of an Australian who has a bloated mortgage on an overpriced unit in Canberra, I find this news interesting.
I actually have a published article I wrote with views on the boom to bust for Australia at http://www.newdawnmagazine.com/latest-issue/new-dawn-148-january-februar...
A magazine that publishes information like 'chemtrails and the nuclear connection' ??? I wouldn't want to advertise being published there. Groan... Shoot me now!
Chemtrails and the nuclear connection is non of my interest or business.
Well, come on, find a better publisher! Try Agora. Daily Reckoning Australia/etc. Probably hard to get into but worth every moment you are writing. Not like finding yourself beside the aformentioned!
I concede there is some nonesense published in the magazine - a lot in fact I don't agree with. But then I'm not the editor so I don't have any say in what is published from month-to-month. Also New Dawn in my opinion offers the best alternative news magazine in Australia. I use to read it back in the mid 1990s and have only this year sought them to publish a a couple of my articles, four of them in 2014 alone. Perhaps in the future I will get articles published with a better publisher.
Maybe they don't want to work either.
Haven't they heard of stuffing the channels? Stuff those channels! Oh, that's right.
They did that already.
Ha. How about the warehouses where they sold the same aluminum billets to like 50 customers or got 50 bank loans on the same stock?
CHINA A50 incredibly UP 5% on this news now up OVER 30% in December, is this the biggest fastest bubble ever seen in an Index???
A kernel of some sort of twisted truth?
So, if China's economy is contracting, that means it's "growing" at only 5% or so, which must mean inflation in China is really north of about 5%.
China in decline, sucks for them. As for the US, our recession ended June '09. (wish there was a /sarc there but thats what the massa said)
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