China official PMI illustrates its struggle

Monday, 1 June 2015

The official China PMI for May is out and shows some welcome stabilisation at 50.2, up 0.1. New orders showed some greater promise up 0.4 to 50.6 but export new orders are still shrinking if a little more slowly:

Check out the slowness of the ascent in all measures versus previous cyclical bounces. Give the amount of stimulus being poured in this tells you all you need to know about the very large headwinds in the economy.

Any rebound will be shallow and fleeting based upon this.

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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.