Edge and Odds

The enemy of knowledge is not ignorance, it’s the illusion of knowledge (Stephen Hawking)

It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so (Mark Twain)

Edge and Odds

Invest with smart knowledge and objective odds

CHINA FLASH MANUFACTURING PMI, NEW ORDERS WEAK

  • Flash China Manufacturing PMI™ at 49.1 in May (48.9 in April). Two-month high.
  • Flash China Manufacturing Output Index at 48.4 in May (50.0 in April). 13-month low.

imageThe Flash China Manufacturing PMI pointed to a further deterioration in operating conditions in May, with production declining for the first time in 2015 so far. Moreover, softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the near term, as companies tempered production plans in line with weaker demand conditions.

On a positive note, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required.

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JAPAN FLASH MANUFACTURING PMI UP 1.0 TO 50.9

  • Flash Japan Manufacturing PMI™ at 50.9 (49.9 in April). Operating conditions improve slightly in May.
  • Flash Japan Manufacturing Output Index at 51.7 (49.3 in April). Production rises at moderate pace.

imageReflective of an overall improvement in operating conditions at Japanese manufacturers was a return to growth of both production and new orders in May. Moreover, the rates of expansion were faster than their respective long-term averages. Subsequently, employment rose at the quickest rate since December last year, while buying activity increased for the third time this year so far.

Meanwhile, input prices increased at the weakest rate in the current 29-month sequence of inflation, while charges stabilised, following a three-month period of decline.image