This page has been archived and commenting is disabled.
China Manufacturing Slumps To 3-Year Lows And Soars To 5-Month Highs
Following the earlier onslaught of weak (and strong) economic data, China has revealed its official and Caixin-based PMI surveys for Manufacturing and Services. Sure enough, while China's official manufacturing data missed (to Aug 2012 lows), Ciaxin's survey beat, jumping to June 2015 highs. even as China's official Services PMI beat expectations, bouncing off 15-month lows. The question now is - given The IMF's inclusion of the Yuan in the SDR basket - will The PBOC devalue (as offshore Yuan implies) to juice a collapsing manufacturing sector... or is China's manufacturing now improving if one looks at the "other" PMI?
Lots of confusion, even if just as we suggested before the Caixin PMI print:
Now Markit PMI has to show China Mfg rising and services dropping to make the confusion complete
— zerohedge (@zerohedge) December 1, 2015
And so, behold - China Manufacturing. The official print missed expectations and heads deeper into a 4-month contraction.. butthe Caixin survey surged to 5-month highs, beating expectations
And if you do not believe that the central planners know what they are doing - Dr. He Fan, Chief Economist at Caixin Insight Group explains...
“The Caixin China General Manufacturing PMI for November continued to show signs of recovery, reaching 48.6, compared to October's 48.3. This indicates that pressure on economic growth has eased and fiscal policy has had a strong effect.
Overall, the economy is still on track to become more stable.”
Let's get some context on this so-called "stability" - it moved up 0.3pts and is still at 48.6 - a very contractionary level! So 'contraction' is the new 'killing it'.
China Services... [delayed for now - no explanation from source]
Finally we note that China services PMI is indeed likely to outperform manufacturing at every turn going forward. If we see China services PMI fall off a cliff with manufacturing, then it exposes the gaping wound that reforms are not working and that the glorious five-year plan transition away from the smokestack isn't working...
However, someone needs to tell Chinese stocks to get with the program - following yesterday's afternoon session rescue, Chinese equity investors are again selling to government buyers.
Because US equities are loving it - Dow Futs up over 100 points from the close - running stops above the US open cliff dive...
Charts: Bloomberg
»
- 272 reads
- Printer-friendly version
- Send to friend
- advertisements -
I believe in the central planners. they will deliver us from hell. so it is written.
They will take us to hell, so it is dictated. Fuck every central planner, Fed, ECB, IMF and BIS bullshit chief.
What's the big deal, if America can exist as a nation of waiters and package handlers, why can't China?
That's the thing, everything the waiters and tenders and every hot looking mini skirt serving hot wings touch is made in china.
you can't trust Chinese data, we have two different lies... obviously we need a third lie to split the difference.
I had no idea there were any Chinese left in China; I thought they had all moved to Vancouver, Irvine and SF.
I'll be a Monley's Uncle!
They had to make something up... just like CNBCs group of monkeys.
Lmao. funny numbers. The real readings are probably in the 20s. It's not about whether the banksters think they can fix it. They know it's beyond any return to normal economics ever without a full reboot and decades of despair. To this day there is zero explanation of the deflationary spiral the world has been in. The cancer of capitalism has over borrowed and over produced itself that all the money to have been made for the next century has been made.
"cancer of capitalism" -- so---Sweden, I guess, is better??
/ES up 12.......all good. London, signing off.
Starve the beast. I ain't buyin shit.
Fuk you Yellin
Industrialization is easy. Bring them off hte fields, stick them in factories. make crap and undercut better paid workers.
Now complex financial markets...they require transparency....and for that matter no FED faking it.
So we have US fake non functioning markets in which heli ben and janet have screwed the price of money, and one huge ponzi bunch of lies and crony corruption.
This is NOT doing to end well. Just a matter of time. And that time will be later than any sane person can imagine.
There is no economy in Australia. its all a mere copy of
the US situation execpt for the 2 big games in town.. mining and banking. and thats it.
With less money hitting the bank sector as deposit from thos mining companies, the banks have a major funding problem to keep the house of cards they call the prooperty market afloat.
Thats why the bank reaised rates last month without the RBA . .. they cant source funds at these artificially low rates.
With china in industrial meltdown, ining companies will be operating at a loss per tonne shipped soon imo. $AUD down to US0.50 imo
Funny today here in Oz, the media is spinning the slogan that "government regulators have succeeded in slowing down the property market". yeah right, it was all pre-planned. Just llike the $AUD is doing a "good job" falling to help manufacturing here.... problem is there isnt any manfacturing.
Its a baffle them with bulldust media put up to hide the industrial recession thats about to spill over into the into the retail/consumer/housing/debt sector.
Peter
I expect a significant jump in oil prices soon, and if so, the likely real numbers behind china's official numbers may translate into a renewed alacrity for sabre rattling - and perhaps troops into Syria.
Could be wrong, sure.
But China has manufacturing, and it holds way too much us debt, too. Accelerated dumping or a complete dump in feb/march is certainly possible.
China's woes are really a reflection of falling demand in the us and europe.
Tends to mean global war, and debt repudiation.
Fwiw Id love to see zh publish some articles on the very good chance us debt will never be repaid - because it cant be. Deficits dont matter in the Empire of Chaos.
You could re-phrase that to Umericans buying spree is down to a 3 year Low.
Another circus report!