Only a small respite for ASEAN manufacturing in November
The mean-reversion in Indian’s manufacturing PMI remains largely intact
Adverse food price base effects in Indonesia will now unwind
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- Chair Powell’s heart is no longer in the optionality story; he repeated it Friday but it’s no longer realistic.
- The continued shrinkage of the M2 money supply is disconcerting, even for non-monetarists.
- The manufacturing sector is in the doldrums, and auto sales are now trending down.
Ian Shepherdson (Chief Economist, Chairman and Founder)US
- Chile’s sub-par economic recovery continued in October, with the non-mining sector a key driver.
- The near-term outlook is benign, but indicators point to difficult times for capex further out.
- Peru’s disinflation gathered speed in November, opening the door to bolder rate cuts this month.
Andrés Abadía (Chief LatAm Economist)Latin America
- The respite for ASEAN manufacturing in November won’t last long, with demand still deteriorating…
- …Export-oriented countries continue to cause the most misery; supply-side issues are re-emerging.
We no longer expect BI to start cutting this month, following the upside surprise in
- November CPI.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- EZ manufacturing PMIs suggest that industrial production remains on track for a decline in Q4.
- Manufacturing employment is now falling steadily; will it pull the broader labour market down?
- It’s early days, but we’re starting to feel excited about better-looking manufacturing surveys in Q1.
Claus Vistesen (Chief Eurozone Economist)Eurozone
The leap in the Chicago PMI likely is noise, not signal' a modest recovery in home sales lies ahead.
US
- In one line: Q3 was better than Q2, but the headline continues to be flattered absurdly by statistical discrepancies.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
In one line: ECB hawks are about to eat humble pie.
Claus Vistesen (Chief Eurozone Economist)Global
In one line: ECB hawks are about to eat humble pie.
Claus Vistesen (Chief Eurozone Economist)Eurozone
In one line: German unemployment is rising, but employment growth is resilient.
Claus Vistesen (Chief Eurozone Economist)Eurozone
China's manufacturing PMI is hit by falling demand
Duncan WrigleyChina+
- Core PCE inflation is fading rapidly; in recent months it has run only just above 2% on a sequential basis.
- Consumption spending slowed at the start of Q4, but likely is on course to rise at a 2%-plus rate.
- Look for only a modest bounce in the ISM manufacturing index, despite the leap in the Chicago PMI.
Ian Shepherdson (Chief Economist, Chairman and Founder)US
- Brazil’s unemployment fell in October to recent cyclical lows, but the good news won’t continue.
- Mexico’s job market remains resilient, buoying Banxico’s hawks, but the current strength can’t last.
- In Chile and Colombia, the job market also looks solid, but this is a lagging indicator; it will slow soon.
Andrés Abadía (Chief LatAm Economist)Latin America
- GDP growth in India slowed trivially in Q3, to 7.6%, but the flattery of discrepancies remains absurd.
- The drop in consumption growth is no one-off; finances are weakening and the credit binge is over.
- The impact of tightening is surfacing more clearly in M3, with cash growth down and deposit growth up.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
