Global Manufacturing Data Indicates 80% Of The World Is Now In Contraction

Global Manufacturing Data Indicates 80% Of The World Is Now In Contraction

The latest global manufacturing data shows that 80% of the economically significant economies across the globe are now in contraction. If you’d like to help fight this statistic by starting your own manufacturing company, make sure you use a safe collection method for debris.

With the US closed today, the rest of the world is enjoying a moderate rise in risk for the same old irrational reason we have all grown to loathe in the New Normal: expectations of more easing, or “bad news if great news”, this time from China, which over the weekend reported the first official sub-50 PMI print declining from the magical 50.1 to 49.2, as now even the official MATH.RANDOM() Chinese data has joined the HSBC PMI indicator in the contraction space for the first time since November, which is a benefit to many who are looking to manufacture products there, be it with help from a China agent or otherwise. Sadly, following today’s manufacturing PMI update, we find that the rest of the world is not doing any better, and in fact of the 22 countries we track, 80% are now in contraction territory. True, Europe did experience a modest bounce from multi-month lows of 44 in July to 45.1 in August (below expectations of 45.3), but this is merely a dead cat bounce, not the first, and certainly not the last, just like the US housing, and now that China is officially in the red, expect the next shoe to drop in Europe. Also expect global GDP to eventually succumb to the manufacturing challenges faced by virtually every country in the world, and to post a negative print in the coming months.

And charted via MarkIt:

Categories: ECONOMY

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