Analysts at Rabobank suggest that in Asia, the official PMI report of China is showing a deterioration of activity in the manufacturing sector with the PMI falling to 49.4 in December from the boom-bust mark of 50 in November.
Key Quotes
“This weakening trend was reconfirmed this morning with a 0.5 points fall in the Caixin manufacturing PMI to 49.7.”
“Although the official PMI for the non-manufacturing sector offered some consolation by inching up to 53.8 in December, the broader picture is one of slowing activity in the wake of the trade war between China and the US.”
“Markets participants are clearly taking their cues from the manufacturing data, especially as several other Asian economies, among which Taiwan, Malaysia, Philippines and Vietnam, are also showing a further deterioration in PMI surveys. Whilst there may be some hope that this slowdown in Asia will force China to show its cooperative side in solving the US-China trade dispute, for now it keeps the spotlights on the global economy.”
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