China - Caixin / Markit Manufacturing PMI for December ... bleh! In at 48.2
- expected is 48.9
- prior was 48.6
Summary from Caixin/Markit:
- Operating conditions faced by Chinese goods producers continued to deteriorate in December
- Production declined for the seventh time in the past eight months, driven in part by a further fall in total new work
- Data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December
- As a result, manufacturers continued to trim their staff numbers and reduce their purchasing activity in line with lower production requirements
- Meanwhile, deflationary pressures persisted, as highlighted by further marked declines in both input costs and selling prices
Comment from Dr. He Fan, Chief Economist at Caixin Insight Group said:
- "The forces driving an economic recovery have encountered obstacles and the economy is facing a greater risk of weakening
- More fluctuations in global markets are expected now that the U.S. Federal Reserve has started raising interest rates
- The government needs to pay more attention to external risk factors in the short term and fine-tune macroeconomic policies accordingly so the economy does not fall off a cliff
- It needs to simultaneously push forward the supply-side reform to release its potential and reap the benefits."
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Yep ... this is another terrible result. It should weigh on the AUD and keep up the pressure for further yuan devaluations.
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While I'm at with the PMIs ... Taiwan's December PMI was much better, in at 51.7 for December from 49.5 in November. New orders picked up (first rise since March!). Markit cite improved domestic demand as a key driver, with new export orders little changed.
