EM vs. DM Manufacturing PMIs

By Callum Thomas

I thought this chart was really interesting and worth highlighting, particularly given I’ve been writing a lot about emerging markets recently.  The reason I highlight this chart is because in October the emerging markets composite manufacturing PMI rebounded to a 5-month high.  Now it is important to note that this is a relatively volatile index month-to-month and ideally we’d like to see another stronger or at least stable month to confirm… but this is a really promising sign.  The worst case scenario for EM from an indicator perspective would have been to see a precipitous and unabated decline and breakdown through the 50-point mark which delineates economic expansion vs contraction.  In short – it looks like EM has stopped slowing.

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