China's Services Economy Growth Just Cratered

Amid the global growth party of hope-strewn PMIs across the world (all of which have been shown time and time again to hold zero correlation to actual economic data), China's non-manufacturing data just puked in the punchbowl, crashing to its weakest level since May 2016 (despite amodest uptick in manufacturing).

Is China's lagged credit impulse finally starting to leak into reality?


Manufacturing PMI rose from 51.4 to 51.7 in August but employment fell, new export orders fell, and both input and output prices soared. Notably large enterprises actually downticked with medium-size entities the most hopeful.

On the services side, non-manufacturing PMI tumbled to 53.4 (still expansionary, we hear bulls cry) - the weakest since May 2016 as new orders, business expectations, and inventories weakened.


ET (not verified) Wed, 08/30/2017 - 21:23 Permalink

When China sneezes, the US catches a fatal disease.Physical Gold and Silver will preserve your wealth for GENERATIONS.

GUS100CORRINA oDumbo Thu, 08/31/2017 - 00:45 Permalink

Does anyone believe any of the data out of China anymore?Let's just all admit right here right now that if the Chinese don't like the number, they will change it just like the FED. If markets start to go down, the Chinese PPT will step in to SAVE THE DAY just like the FED.Like SPROTT was saying earlier today, MARKETS no longer exist.

In reply to by oDumbo

fx DWD-MOVIE (not verified) Thu, 08/31/2017 - 07:35 Permalink

I am no friend of the PMI stuff, but truth be told, they have been a remarkably good leading indicator for GDP, with a time lag of approximately 4 months. Now, we can start to argue about the silliness of GDP, its measures and such. But the notion that PMIs have zero correlation with"hard" economic data is plain bs and ignorance.Look here, for instance, for a chart showing a rather good, albeit not perfect, correlation:…  

In reply to by DWD-MOVIE (not verified)

gregga777 Wed, 08/30/2017 - 21:29 Permalink

I lost a dime on Monday. My wealth cratered, too. Of course, the entire y-axis spanned only $0.50. But, it was still a monumental visual drop displayed on the chart.

Yen Cross Wed, 08/30/2017 - 22:07 Permalink

    But everything is awesome with their manufacturing.     <sarc>    All these goal-seeked macro numbers are such a fucking farce!  Yeah right... The US economy grew at 3.00% in Q-2 But macro is completely divergent from the fake reality.  18:00   CNY   Manufacturing PMI (Aug) 51.7 51.3 51.4  

DaBears Wed, 08/30/2017 - 23:09 Permalink

quick! Ctrl-P another trillion Mao-noploy money now, because according to Chinese magical pegged currency, it instantly turns into USD/ floating currency denominated GDP. No wonder Chinese insiders are stampeding out of their free Mao-nopoly money for REAL  floating foreign reserves before it turns into toilet paper.

Twee Surgeon Wed, 08/30/2017 - 23:02 Permalink

Here is a video From China, it is two days old. The first 1 minute is a montage of various western Vloggers in China and after that you are getting a guided tour by an American and South African guy who are both highly fluent in Chinese and are married to Chinese girls.Financial guys making charts and predictions is one thing but from what I'm seeing it looks like full speed ahead and then some in Chinese construction.I'm fairly aware of the Echonomics (T.M.) but it looks like some services like Construction are doing a pretty gangbusters boom-town business in China.Well worth a look. These dudes are not sitting in offices looking at numbers.

joey stalin Thu, 08/31/2017 - 00:59 Permalink

While the Chinese economy lifts millions out of poverty each year, the US pushes millions into destitution.  While the Chinese build--the US destroys. While life expectancy increases in China, it decreases in the US.  Which model is the more sustainable one?

DaBears joey stalin Thu, 08/31/2017 - 09:41 Permalink

Yea Communist China's poverty line is set at $400 per year, below $1.25 set by global, therefore millions indeed was lifted out of 3rd world poverty on such low bar.  Only 300 million more to go however. Chinese middle class is set @ $8000 when US poverty level is around $13000, so sit down and got back to your 3rd world country with your false equivalence.

In reply to by joey stalin

SybilDefense Thu, 08/31/2017 - 09:04 Permalink

2 Chinese internet stocks took a big beating after besting their top and bottom numbers again.  MOMO and BZUN.  MOMO is online live video and gaming.  New internet users being created by the millions will learn "computer" from watching racy bids and playing games (just like kids in America).  Then they go the BZUN to by name brand American goods that they saw on these videos. Easy +%50 gain within the next 3-6 months.  Way oversold after positive quarterlies that most companies will never ever see.  Have a look.