In case you missed it, the HSBC China manufacturing PMI just came out showing a decline below 50. Not good.
The last time it dipped below this threshold was back in August. (A reading above 50 typically signals expansion, below 50 signals contraction).
On a related note, here’s an eye-catching chart from Hedgeye Industrials analyst Jay Van Sciver revealing weakness in Chinese construction materials prices.
Again, not good.
Van Sciver highlights falling inflation-adjusted average rebar prices (that metal rod used to reinforce cement) as an additional sign that fixed asset investment growth in China may be slowing.
