Nothing unexpected here, via Pantheon. Still all about consumption bounce back and fading investment for me.
- China: Manufacturing PMI rose to 50.1 in January from 47.0 in December. Consensus was 50.1.
- Non-Manufacturing PMI jumped to 54.4 in January from 41.6 in December. Consensus was 41.6.
- Industrial profits fell 4.0% ytd y/y in December, worsening from a 3.6% drop in November. Bloomberg reports no consensus.
China’s PMIs rebounded in January, with especially services beating expectations. This is an indication that the Covid exit waves have crested and that life is starting to return to normal for many people. Chinese health officials report that the peak in terms of infection numbers and fever clinic visits was in late December. They also say that the mass migration during the Chinese New Year holiday last week has not brought secondary waves, as yet. A leading state epidemiologist believes that 80% of the population were infected in the Covid exit waves, meaning that immunity levels are higher, at least to similar variants.
