China released PMI data last night for April’s manufacturing that came in at 50.4 which was better than March and slightly higher for the third straight month, but weaker than the 50.5 estimate economists expected.
We continue to say that until PMI data for China breaks out of the 48-52 range it has been in for 2.5 years, we do not see a significant policy reaction one way or another.
Today’s data did show some negative export trends but not ones we think are systemic. Trade numbers for China are crucial readings but choppy data points.
We remain more focused on domestic consumption trends and lending figures from the banks.