Tuesday, February 1, 2011

Weaker Than Expected Chinese PMI

by Bespoke Investment Group

For all the talk of an overheating economy in China, today's release of the PMI manufacturing index came in weaker than expected for the second straight month.  Over the last two months, the index has declined from 55.2 down to 52.9 forming what is increasingly beginning to look like a downtrend in the indicator.  To be sure, it's still positive but based on this indicator at least, it appears that the Chinese government's efforts to slow down economic growth are having at least some effect.


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