Like It Never Happened! China’s PMIs Back In Expansion Just One Month Later
China's PMIs staged a large (some might call it wholly improbable) bounce in March, rebounding dramatically from February's record-low prints.
The manufacturing gauge, which plummeted last month in the wake of the shut-ins and draconian lock-downs implemented to control the spread of COVID-19, surged to 52 in March from 35.7.
That was well ahead of consensus, which was looking for 44.8. The range was 38 to 59.1, reflecting the virtual impossibility of forecasting an extremely fluid situation m
The China V recovery is one part saving face and two parts of PR designed to give Trump a trade war spasm and or heart attack. Apparently the world is to look for leadership and direction from the Commies, while the chips are down for Uncle Sam. Obviously Trump will get suckered into not playing catch up, but take the virus war economy into high gear and show those Chinese who’s King!
Some what anecdotal, but I own a piece of a company that exports out of China. It was nearly impossible to get anything out of market in Feb. Ships were simply not sailing because they didn’t have enough cargo. The ships all waited until
March when there was a flood of supply/cargo. All the ships were full per our freight forwarder, they did not see cancelled sails in March. Per our freight forwarder, they are starting to see cancelled sails coming in early April. And that is with air cargo disruptions theoretically pushing more cargo to the boats. With commercial airlines not traveling, the contracted cargo they carry has been cancelled.
I would expect that March is over inflated as it shows a push forward of activity from Feb and that April reflects the demand destruction we are currently seeing meaning the data will spike down again.
Thank you. Good to get some intel from the front lines, so to speak.
Great intel thank you for sharing