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The global slowdown continues. Don't worry, the slowdown is at a "moderate pace".
The HSBC Flash China Manufacturing PMI shows China business conditions deteriorate at moderate pace in February.
- Flash China Manufacturing PMI™ at 48.3 in February (49.5 in January) Seven-month low.
- Flash China Manufacturing Output Index at 49.2 in February (50.8 in January) Seven-month low.
Comments From HBSC Asian Economic Research Head
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co - Head of Asian Economic Research at HSBC said:
"February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year"
Commenting on the Comments
Mish says Hongbin Qu is off his rocker.
The idea than central planners can "fine-tune" anything is laughable. Indeed, one should seriously question if they can "gross-tune" anything at all.
Even if central planners can "gross-tune" it is at a huge cost of bubble-blowing economics.
Mike "Mish" Shedlock