China’s official manufacturing purchasing managers index PMI dipped below 50 for the first time since the recovery yesterday. The headline PMI declined to 49, below consensus of 49.8. Looking into the components probably provides an even gloomier picture. New exports order declined further to 45.6 from 48.6, indicating continued deterioration of global demand.
via Inside China’s ugly PMI – macrobusiness.com.au | macrobusiness.com.au.
“There has been an intensification of labour unrest in the past week that is probably the most significant spike in unrest since the summer of 2010,” said Geoffrey Crothall of China Labour Bulletin, a Hong Kong-based labour advocacy group that monitors unrest in China.
….Factories are cutting the overtime that workers depend on to supplement their modest base salaries, after a drop in overseas orders.
HSBC’s preliminary China Manufacturing Purchasing Managers’ Index, or “flash” PMI, fell to a two-month low in September, indicating a broadening slowdown in the Chinese economy, with industrial output swinging from a modest expansion to a deterioration.
via China manufacturing data paint weak picture – Economic Report – MarketWatch.
My main concern is that frighteningly, the RBA, and probably much of the government, sees Australia’s future as a single bet on mining, and is willing to sacrifice much of the remaining economy for this to happen……. Remember, the minerals will be in the ground if we don’t mine them now, but the decades of production chains elsewhere in the economy are easily destroyed and slow to rebuild.
I acknowledge that the RBA has a single tool in its toolbox, but surely the message we should be hearing is that a strong and stable economy is a diverse economy. Quarry Australia is a very volatile and risky place to want to be.
via The Rolex economy – macrobusiness.com.au | macrobusiness.com.au.
