OilFinder2 wrote:Lore wrote:Why would that happen when all the data in Europe for the foreseeable future points in the downward direction? If you think our weak 2.2 growth rate is going to change things over there, then you need to do a little more research on global economics.
It need not just be the US, there's also China, India, the whole developing world, etc. Things in China, for example, appear to be turning around after a weak spot, so imagine increased purchases by the Chinese and Indians of Mercedes and BMW's, and you get a turnaround in Germany, which will help other Eurozone nations, etc. In the meantime the US continues merrily along, and before long you get a turnaround in Eurozone measures and they begin, once again, following US industrial production and other figures upward.
Not quite, China relies on the EU as its largest trading partner. They had a monthly uptick from a steady downturn which only shows that the pace of China's slowdown has stabilized at this moment. They are within their 5th straight quarter of a downturn.
"It is way too premature, if not misguided, to conclude that China's growth has distinctly bottomed and is poised for a strong bounce; especially in the context of external headwinds," said Vishnu Varathan, an economist with Mizuho in Singapore.
He pointed out that, although new export orders rose, an overall slip in the new orders component pointed to a slowdown in domestic demand, adding that struggling smaller firms and a precariously poised global economy were also worrying factors.
"With U.S. 'green shoots' faltering and the European recession intensifying, sustained improvement in China's manufacturing sector is anything but a guarantee," Varathan said.
Figures due later on Wednesday are expected to show factory activity in Europe shrank for the ninth consecutive month, with the PMI reading forecast at a dismal 46.0, lower than the 47.7 in March.
http://www.reuters.com/article/2012/05/ ... 2420120502
Doesn't look like the EU is selling more expensive products on average to anyone right now.
As for the USA, we're just muddling along.
To the above article...
The manufacturing PMI for the euro zone slumped to 45.9 in April from March's 47.7. That was weaker than the preliminary reading and the lowest index level since June 2009. Economists had forecast the index would be unchanged from the 46.0 preliminary reading.
http://online.wsj.com/article/SB1000142 ... 21644.html