Let’s just check the facts, which are statements in their own way. We will be looking at facts this year, which started with a big financial turmoil due to China’s weakness. Later that weakness subsided and commodities in general started recovering along with equities and by March, almost everyone was thinking about is new stimulus efforts from China, sized in trillion of Dollars.
- China official manufacturing PMI dipped below 50, which means contraction, last year. It stayed there until a big jump in March, which was considered as arrival effect of stimulus. For March, PMI came at 50.2 but for both April and May, it remained at 50.1
- Official services PMI shows that sector is doing much better. It jumped from 52.7 in February to 53.8 in March but drifting lower since. May reading was 53.1
- Now, when we see private gauge PMI, calculated by Caixin and Markit economics, it shows China’s manufacturing sector entered contraction in March, 2015 and it is still contracting. There was a jump in March from 48 to 49.7 but drifting lower like that above two gauge.
Look at any data, you would strangely find, trillion of Dollars’ worth of stimulus, barely showing any signs.
