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.

Key points

  • 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