It appears that the Chinese economy lurched backwards again in May. The Eurozone remained firmly in recession, or is that depression? So much for things looking up!
You may know that the Purchasing Managers’ Indices follow a formula, with any score over 50 meaning expansion; under 50 indicates contraction. However, with China it is not that simple, and normally a score under 50 suggests growth slowing rather than outright contraction.
This morning the flash composite PMI for China from HSBC/Markit and for the Eurozone from Markit were out.
These are preliminary readings, with the fuller and more accurate PMIs due out at the beginning of June.
The May flash composite PMI for China was 49.6, the first reading under 50 since last October. The May flash composite PMI for the Eurozone was 47.7, the highest reading in three months but still consistent with recession.
Let’s see what the more accurate and detailed PMIs for both China and the Eurozone say in ten days’, or so, time.
© Investment & Business News 2013