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.

Read more at

http://globaleconomicanalysis.blogspot.com/2014/02/china-manufacturing-deteriorates-at.html#1hV0PGQVpULHI6Us.99

Images: Flickr (licence attribution)

About The Author

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.  Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education.  Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.

When not writing about stocks or the economy I spend a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com.