Monday, November 08, 2010

SocGen: China Now Drives The Global Manufacturing Cycle

From the economists at Societe Generale:
... the aggregate global PMI snapped back by 1.2 ppts in October. What we have then is the US, European and global PMI's following Chinese PMI with a lag of around 2 months. This is a complete turnabout from the pre-crisis world where the Chinese PMI tended to follow the G3 PMI's with a lag of between 1-2 months. Causality has completely switched in the post-crisis world.

Click on charts to enlarge, courtesy of Societe Generale.


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