The slide in Chinese manufacturing momentum continues
John Robertson
PortfolioDirect
The slide in Chinese manufacturing momentum continues. The Chinese official purchasing managers index which measures the activity rate among manufacturers slipped again in February from 50.5 to 50.2 (the blue bars in the chart) leaving the manufacturing sector hovering on the cusp between expansion and contraction. The effect of otherwise favourable conditions for resource sector equity prices (the red line) are being eroded by the evident lack of strength coming from China and highlighting what remains the most significant risk facing the sector. While the Chinese government is rhetorically committed to keeping the overall growth rate above 7.2% with manufacturing expanding at a sufficiently high rate to meet its employment objectives, they are struggling with the implementation.
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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 strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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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...
Expertise
No areas of expertise
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...
Expertise
No areas of expertise
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