The Chinese manufacturing purchasing managers index fell slightly in August indicating that the sector is expanding but at a reduced rate

John Robertson

PortfolioDirect

The Chinese manufacturing purchasing managers index fell slightly in August indicating that the sector is expanding but at a reduced rate. Much of the news commentary about the result has exaggerated the extent of the change. As the chart illustrates well, the most recent reading is not dissimilar to the readings for well over a year. If anything it is better than average for this period but still not indicative of a change in conditions sufficient to bring new life to the resources end of the equity market. With Chinse growth more likely to be edging lower than higher even with additional government support, there is nothing on the horizon to suggest the sector is going to expand at a significantly stronger pace than we have been seeing so far in 2014.


John Robertson
John Robertson
PortfolioDirect

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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