Editor's Note: Below is a brief excerpt from a note we sent to Hedgeye Risk Manager subscribers earlier today. Click here to understand the investing implications and learn more about Hedgeye Risk Manager.

China's Economy is Slowing... The Latest Evidence - china1

It's been a great run for global economic growth. However, after a multi-quarter "synchronized global recovery," we think this increasingly consensus narrative is played out. 

The cracks are becoming more evident with each passing day. And there's the really big problem that can't be ignored: China's economy is slowing. As we detail below, this will have serious implications for our 1Q 2018 call on #GlobalDivergences.

Here's the latest #ChinaSlowing data in a brief note written by Senior Macro analyst Darius Dale this morning:

CHINA: Data confirming our #Quad3 forecast for Q1… Lunar New Year seasonality notwithstanding, today’s Manufacturing PMI print puts a lot of onus on a March bounce to reverse the sharp trend lower in China’s manufacturing sector

  • Manufacturing PMI ticked down to 50.3 in FEB from 51.3 in JAN vs. Bloomberg Consensus estimate of 51.1; trending lower
  • Non-Manufacturing PMI ticked down to 54.4 in FEB from 55.3 in JAN vs. a Bloomberg Consensus estimate of 55.0; trending higher

China's Economy is Slowing... The Latest Evidence - China Manufacturing PMI  002

China's Economy is Slowing... The Latest Evidence - etf pro