Photo: Deutsche Bank
That chart’s for China, and as you can see, small business PMI just hit its highest level in a year, despite the Lunar New Year slowdown.
And so Deutsche Bank analysts Jun Ma, and Linani Liu write:
Economic Outlook: Stronger-than-expected China January PMI and improved global indicators suggest that the forthcoming IP slowdown may be more modest than market expectations. We have raised our qoq (saar) Q1 GDP growth forecast to 7% from the previous 6.4%. This implies a yoy Q1 GDP growth rate of 8.4%. Food inflation was more stubborn in January and February than expected due to cold weather. Although a tentative factor, it delays the CPI disinflation.