Previous post Next post

More Unmixed Signals

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, )
China PMI 2010-2018

- Click to enlarge

Activity inChina’s [sic] manufacturing sector contracted for the first time in more than two years in the month of December amid a domestic economic slowdown and Beijing’s ongoing trade dispute with the U.S.

Domestic economic slowdown you say? What could that possibly mean? Just this:

PBOC Balance Sheet 2010-2018

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

PBOC Balance Sheet 2007-2018

- Click to enlarge

Dollar Shortage

Dollar Shortage

- Click to enlarge

Full story here
Jeffrey P. Snider
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
Previous post See more for 5) Global Macro Next post
Tags: ,,,,,,,,,,,,,,,

Permanent link to this article: https://snbchf.com/2019/01/snider-more-unmixed-signals/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.