Just passing on an update on Chinese PMI for February – more weakness. The big risk, as previously, mentioned, is that China is the major driver of future potential weakness in emerging markets. As demand from China dries up the problems in emerging markets have the potential to persist and worsen. Here’s the key points from today’s release (via Markit):
- 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.