Global PMI Plunges To 16-Month Low As 'Synchronous Recovery' Meme Collapses

After rising confidently for 5 straight months, Global PMI collapsed in March - plunging to 16-month lows, dropping by the most since Q1 2016's global growth scare.

As Markit notes, global economic growth slowed sharply to the weakest in over a year in March, according to the latest PMI surveys. Although some of the slowdown may prove temporary, the broad-based nature of the weakening suggests growth has peaked. Price pressures meanwhile remained elevated, in part due to supply constraints giving pricing power to sellers.

To put the decline in context, while the February PMI reading was consistent with global GDP rising at an annual rate of 3.0% (at market exchange rates), the March reading is indicative of 2.5% growth.

Global input costs rose sharply again during March...

Machinery and equipment makers - bellwethers of business investment spending – have recorded the strongest global output growth of all sectors covered by the PMI surveys so far in 2018.

Tech equipment makers have likewise seen strong growth this year, also reflecting rising capex, although the rate of increase slowed sharply in March. However, only three of the 24 detailed sectors (media, healthcare and real estate) recorded faster output growth in March, further highlighting the broad-based nature of March’s slowdown.

 

And the globally synchronous recovery narrative has collapsed as major developed markets are all now rolling over and dropping in a 'synchronized manner'... Weaker rates of expansion were seen in all four of the largest developed economies.

 

Of course, none of this should be a surprise as China's credit impulse has been leading this global pump and dump for the last few years...

 

Comments

karenm Wed, 04/11/2018 - 05:00 Permalink

A small smidgen of truth, never the full truth. Terms like "Slower growth" because they can never tell the masses the economy isn't growing, that would be a sin.

 

Folks, the economy is collapsing, not "slowing."  We see it everywhere from empty stadiums in ALL sporting events to theater ticket sales, stores closing, and mass layoffs which are well documented on thelayoff.com

 

Don't expect the news to tell you this stuff, or ZH to tell you the whole truth. If you want the truth, you'll have to dig for it, search for it, piece it together. Nobody is going to hand it to you in an entertainment format for you to watch while eating bon bons

DEMIZEN Wed, 04/11/2018 - 05:50 Permalink

markets are dead as fucking disco. everything is either perfectly hedged or taken off the table. I've been staring at the shit for at least 48hours.  stock volumes look funny.

El Hosel DEMIZEN Wed, 04/11/2018 - 06:22 Permalink

"stock volumes look funny"

 Yes I was staring at yesterdays 5 minute spy futures chart, three times  ( 10am 12 and then at the close ) heavy selling came in and the machines keep the price up somehow.... Its a neat trick, money leaves and the market prices go up.

Its like supply and demand .... in reverse.

In reply to by DEMIZEN

DEMIZEN El Hosel Wed, 04/11/2018 - 07:09 Permalink

right. the volumes spike but price never changes. even if it is perfectly hedged wtf triggers the trades? and is not like volumes can be linked to the slope or any kind of momentum values don't look like psych stops or anything I recognize. the just go off for whatever reason.

ppt algos lunch time traders I don't know. 

In reply to by El Hosel

Golden Showers Wed, 04/11/2018 - 06:23 Permalink

Global PMI.

I don't know. What I do know is that people stateside have a problem with things like unemployment figures and GDP revisions.

Of course, the Global PMI is down pat. The most important econimic indicator since Elvis.

Whatever Global PMI is, I'm sure it's important and all that. Global GDP wise.

It's all perfect.

Ptolemy had a great idea once. Nested everything inside a sphere and the sun revolved around it. It kind of worked. Geocentric. Global.

Sometimes I'm just back in my jammies with the feet in them watching Carl Sagan on Nova reading this shit and sometimes I'm on a greyhound bus. Most of the time I'm shit faced. But what the fuck?

I really want to know how you get a Global GDP? How is a Global PMI assessed? How are gold and silver fixed?

Save it. What does Global mean? Are slaves working at capacity? I want to know the efficiency of slavery. This and only this is the key indicator for moi. Do the trains run on time? Is the earth itself failing? Are people spending too much time online?

Ricki13th Wed, 04/11/2018 - 06:50 Permalink

Why do you think countries are gearing up for war. Shit is a whole lot worse than these fake PMI numbers. Economy and trade is about to collapse.

Ricki13th Wed, 04/11/2018 - 06:50 Permalink

Why do you think countries are gearing up for war. Shit is a whole lot worse than these fake PMI numbers. Economy and trade is about to collapse.