30 Jan 2014
Flash: China PMI doesn’t mean China cannot grow - BTMU
FXstreet.com (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ noted China's poor PMI.
Key quote:
" The final reading of the HSBC/Markit manufacturing PMI for January confirmed moderation in the local economy, but in the absence of most other data till February (and thinner trading conditions in Asia) has assumed a life of its own in driving EM nervousness clear around the world."
"We might just as well point out - in comparison with the final 49.5 reading for January - that this measure troughed at 47.7 in 2013 and 47.6 in 2012, and the economy still managed to grow 7.7% in both years. Nonetheless, we should probably expect a little hyperbole without verification given the Chinese practice of suspending data releases around the Spring Festival. Meanwhile China continued its spotlessly clean record of never ever having any default - maybe we should start calling it the Lucky Country instead."
Key quote:
" The final reading of the HSBC/Markit manufacturing PMI for January confirmed moderation in the local economy, but in the absence of most other data till February (and thinner trading conditions in Asia) has assumed a life of its own in driving EM nervousness clear around the world."
"We might just as well point out - in comparison with the final 49.5 reading for January - that this measure troughed at 47.7 in 2013 and 47.6 in 2012, and the economy still managed to grow 7.7% in both years. Nonetheless, we should probably expect a little hyperbole without verification given the Chinese practice of suspending data releases around the Spring Festival. Meanwhile China continued its spotlessly clean record of never ever having any default - maybe we should start calling it the Lucky Country instead."