China Flash PMI sags

Well, although the equity market is yet to wake up to it, the data points suggesting that the peak in this little global growth rebound is already behind us are starting to add up. The latest is today’s China PMI which has sorely disappointed by reversing 1.9% to be barely in the positive in February at 50.4.

The internals weren’t so hot either with slowing in all of the leading components especially export new orders, which was the same in the US PMI:

The fleeting Christmas inventory bounce thesis is looking strong.

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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.