The China PMI prints are out, and their strength is a welcome offset to a) the weaker US ISM’s and b) validation of the reopening.
The very strong services outcomes (non-manufacturing) is potentially indicative of the focus to grow consumption as a share of GDP, rather than the unsustainable manufacturing / fixed asset investment approach that has defined the past 15 or so years.
A difficult conclusion to reach, based on just a couple of prints, but, were it to be so, would suggest commodities have run their course, and we won’t be seeing anything like 2008, or 2015 levels of demand for iron ore, copper, steel, and so on.
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