Chinese manufacturing data improved further in April according to the PMI (Purchasing Managers Index) from the China Federation of Logistics & Purchasing.
The PMI increased to 53.3 in April, up from 53.1 in March, but slightly below expectations of 53.5. A figure above 50 indicates an improvement in economic activity whilst one below signals a deterioration.
The data seems to be showing a stabilisation in Chinese manufacturing activity but last week’s Caterpillar conference call gave strong signals that demand in the economy is slowing down. Any slump in US consumer activity on top of the eurozone stagnation may well add to further pressure for the Chinese government to intervene again and spend money on stimulus like it did back in 2008 following the financial crisis.
Anthony Bolton may be having further sleepless nights as he battles to turn around the £515 million Fidelity China Special Situations fund which is now down a not insignificant 23 percent on the float price to 77p. The macro economic climate is more challenging than it was in 2011 that’s for certain, and last year he presided over a 25% slump in the fund’s value.
Contrarian Investor UK