China’s October PMIs shrink, indicating deflation risk - ANZ

The Australia and New Zealand Banking Group analysts provide their quick reaction to China’s official Manufacturing and Services PMI reports released earlier this Thursday.

Key Quotes:

“China’s PMI data today definitely indicates a broadening economic slowdown.

The progress of the US-China trade talks is no longer a cyclical driver of the Chinese economy’s growth momentum, as the domestic economy dominates the outlook.

China’s latest PMI print also signals the risk of deflation, as evidenced in the downward price pressures in both the manufacturing and services sectors.”