Wednesday, March 1, 2023

China's Manufacturing Comeback And Global Inflation

 Until recently China's economy had been toiling under strict zero-COVID rules - but no more.  Manufacturing PMI jumped in February signaling a return to the factory floor, and - naturally - demand for raw material, energy and transport services (see chart below).

China PMI

Which raises this question: if global inflation soared without Chinese demand, where will it go now?  IMHO, it certainly won't go down any time son...

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