More bad news from China here as the Flash PMI falls to a 9 month low (via Markit):
- Flash China Manufacturing PMI™ at 48.3 (49.2 in May). Nine-month low.
- Flash China Manufacturing Output Index at 48.8(50.7 in May). Eight-month low.
The HSBC Flash China Manufacturing Purchasing Managers’ Index™ (PMI™) is published on a monthly basis approximately one week before final PMI data are released, making the HSBC PMI the earliest available
indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.
Well, the US economy now looks like the only moderately strong leg. There’s certainly not a lot of help coming from Europe or China. Here’s to hoping the isolated bit of strength can continue. I am hopeful. But increasingly less hopeful…
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.