China’s official Purchasing Managers’ Index (PMI) fell to a record low of 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday, well below the 50-point mark that separates monthly growth from contraction.
A sign of things to come globally?
A sign of things to come globally?
China manufacturing (35.7) and non-manufacturing (28.9) #PMI fall to record lows in February pic.twitter.com/m8CIcFaoYr
— David Scutt (@Scutty) February 29, 2020
Factory activity in China contracted at the fastest pace on record in February, highlighting the damage from the coronavirus outbreak on the world’s second-largest economy.
China’s official Purchasing Managers’ Index (PMI) fell to a record low of 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday, well below the 50-point mark that separates monthly growth from contraction. Analysts polled by [Reuters] expected the February PMI to come in at 46.0.
The somber readings provide the first official snapshot of the state of the Chinese economy since the outbreak of the coronavirus epidemic which has killed almost 3,000 people in mainland China and infected about 80,000.
The results suggest deepening cracks in an economy already hit by the trade war as the coronavirus forces widespread transport curbs and tough public health measures which have paralyzed economic activity.
Nomura expects first-quarter growth to be at 2.0% year-on-year while Capital Economics estimates China’s economy would contract outright in year-on-year terms this quarter, for the first time since at least the 1990s.
www.cnbc.com/2020/02/29/china-pmi-factory-activity-shrank-at-fastest-rate-on-record-in-february.html
There could be more shocking PMIs coming from the rest of the world. t.co/AshBSa5Kbo
— Iris Pang (@Iris_Pang_China) February 29, 2020
ZH: “China Reports Catastrophic Data” NatSec Source: Trump Being Advised to Close ALL U.S. MARKETS
87 million Chinese students graduate college this year
Where are they going to get a job?
— 𝐏𝐢𝐧𝐞𝐜𝐨𝐧𝐞 𝐌𝐚𝐜𝐫𝐨 (@pineconemacro) February 28, 2020
This drop in the Chinese PMI in isolation is enough to move the Global PMI 4-4.5 index points lower and that is even before considering spill-overs.
This is really really bad.
— AndreasStenoLarsen (@AndreasSteno) February 29, 2020