by Jeffrey P. Snider
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| China’s National Bureau of Statistics (NBS) reports that the country’s official manufacturing PMI in December 2018 dropped below 50 for the first time since the summer of 2016. Many if not most associate a number in the 40’s with contraction. While that may or not be the case, what’s more important is the quite well-established direction.
Coming in at 49.4 in December, it’s down in a straight line from 51.3 in August. |
China PMI 2010-2018(see more posts on China Producer Price Index, ) - Click to enlarge |
Domestic economic slowdown you say? What could that possibly mean? Just this: |
PBOC Balance Sheet 2010-2018 - Click to enlarge |
| China remains at a monetary standstill, and now the economy, too. But mixed signals or something. |
PBOC Balance Sheet 2007-2018 - Click to enlarge |
Dollar Shortage - Click to enlarge |
Jeffrey P. Snider is the head of Global Investment Research of Alhambra Investment Partners (AIP). Jeffrey was 12 years at Atlantic Capital Management where he anticipated the financial crisis with critical research. His company is a global investment adviser, hence potential Swiss clients should not hesitate to contact AIP
Tags: bank reserves,China,China Producer Price Index,currencies,Currency,dollar,dollar short,dollar shortage,economy,EuroDollar,Federal Reserve/Monetary Policy,manufacturing,Markets,newsletter,PBOC,PMI
