China PMIs hit the wall

Wednesday 28 February 2018

It’s been coming for a while. China’s February PMI is out and weakened materially to 50.3. Internals were if anything weaker:

According to the scale of the enterprises, the PMI for large enterprises was 52.2% , down 0.4 percentage points from the previous month and still in the expansion range. The PMI for medium and small-sized enterprises was 49.0% and 44.8% , down 1.1 and 3.7 percentage points from the previous month respectively .

From the classification index, among the five sub-indices that make up the manufacturing PMI , the production index and new order index are above the critical point, and the raw material inventory index, practitioners index and supplier delivery time index are below the critical point.

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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.