Caixin services slowed more than expected to 51.8 from 52.5 & lower than 52 expected by a smudge. Composite slows to 51.9 from 52.6 (meaning still expanding but at a slower rate).
Note that this is before the virus lock-down so data for Feb will be worse. Question is Q2 not Q1.
Note that this is before the virus lock-down so data for Feb will be worse. Question is Q2 not Q1.
Equity markets erasing gains on this softer service & composite data. Services are very key to China & its softness before the lock-down shows that Feb data will be much uglier. Question is March 2020 & also Q2 2020 & how this evolves. Diff decision: contain the virus or growth?
As in, the lock-down, quarantine & basically delaying of resumption of schools, factories etc will help w/ slowing the infection rate but INFECTS business activities & GDP & growth & all sorts. Need for virus infection to slow to then stop the lock-down. Very difficult decision.
The moment we get a resumption of activity, that will be better for growth but risk the chance of infection growth rates spiking vs slowing. Looking at a situation where the "short-term & acute" weakness of economic growth may or may not be that short-term. Politics & economics.
