China PMI Export Order Down

China PMI Export Order in June slipped to 46.4, denting hopes of a restocking led rebound in export cargo volumes with deeper declines expected. US retail data remains weak especially for home improvement retailers with inventory levels remaining elevated (Home Depot and Lowe’s). The main US grocery/department stores still struggle with high inventory levels, especially for Walmart whose inventory to sales ratio remain above its historical levels. Nike’s sales grew 5% YoY for the 3-month ended


China export Index and anecdotal contrast

The latest China manufacturing PMI new export order index reported as 52.4 before market open on 1 March, suggesting the strongest expansion since March 2011. (source: National Bureau of Statistics). The PMI indices measure sequential changes and value above 50 for this index suggests expansion. Since January 2011 this index has produced only 51 expansionary values against 95 contractionary values. This latest print of 52.4 however contrasts with the anecdotal stories we heard about the current

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