Good news is bad news in China PMI

Thursday, 1 September 2016

China’s official PMI is out for August and firmed a little to 50.4 versus 49.8 expected. Here’s the full data spread:

And chart:

Not tearing away but certainly not crashing. I expect markets will take this badly given it strengthens the odds of a US rate hike. Better news came in the form of an easing services PMI down 4 points to 53.5.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.