China Manufacturing Slows;Fatal Clash in Xinjiang Province

Preliminary results of a new survey of Chinese factories show a slowdown is occurring.The HSBC/Markit Economics China Flash PMI for November came in at 50.5,a three month low,missing the Bloomberg estimate of 50.9 and declining from November's final number of 50.8.Over 50.0 signifies growth in the manufacturing sector.The report revealed weakness in output gains and employment,although new orders were up.
Asian shares were down almost across the board on the news,along with fears of a Federal Reserve cutback in asset purchases,with the Nikkei dropping 1.62% in Monday trading and the Shanghai Composite off 1.60%.*
A late Sunday clash in a village near Kashgar in Northwest China's Xinjiang Province left 16 dead,according to official news agency Tianshan. Muslim Uighur militants reportedly attacked police with explosive devices and knives,killing 14 officers.Two police also died.The area has a history of unrest aimed at Han Chinese immigration into the ethnic Turkic region.*
Sergio Garcia took his fourth Asian Tour career victory Sunday at the Thailand Golf Championship at Amata Spring Country Club in Bangkok.It was the Spaniard's first and only win of the now-concluded 2013 season.He hadn't won since last December at the Johor Open in Malaysia.
Henrik Stenson of Sweden was second on the leader board,and Frenchman Alexander Levy finished third.

A Changing Economy:Manufacturing,B2B on the Rise

To Steven Blitz,Chief Economist at ITG Investment Research,it seems like you're getting two separate sets of numbers in the recent economic data.The U.S. economy is really shifting to its traditional production from consumption.This is a long,slow process.Production doesn't grow as fast as finance and real estate.It's building the U.S. economy toward something more sustainable,a better manufacturing sector.
Manufacturing has been growing since the end of the recession in June 2009.Consumers are still in the process of deleveraging.It's going to be a long slog.
The U.S. economy will be 65% consumer spending-down from 70%.We have never had coming out of a recession with the stranglehold on the yield curve that we have today,with the Federal Reserve's low interest rates.
Nonetheless,business spending is headed up.That favors high tech,low tech,energy.I would think B2B spending is a boom area,Mr.Blitz observed.
Based in New York,ITG Investment Research relies on a vast amount of data mining to provide material for its analyses.It produces industry investment,economic and risk research for global portfolio managers and traders.ITG has 17 offices in 10 countries.

Trade Group Tracks Progress

The Institute for Supply Management,a buyers' trade group,has recorded gains in the manufacturing sector for the third straight month.The October reading for the sector came in at 55.7,up from 52.6 in September.The October estimate had been 53.0.Readings above 50 indicate growth in manufacturing.October's number was the highest since April 2006.
The growth tracked by the ISM was attributed to stronger U.S. exports,inventory restocking and government stimulus programs.It manifested itself in expansion of manufacturing employment for the first time in 15 months,registering at 53.1 in October,up from September's 46.2.
The ISM is located in Tempe,Arizona,which is adjacent to Phoenix.Its reports are based on surveys of hundreds of businesses.

Drop in Manufacturing Index

The Institute for Supply Management,a buyers' trade group,has released its monthly manufacturing sector index-a key gauge of U.S. economic health.The September number was the lowest since 9-11,dropping to 43.5 from 49.9 in August.A reading below 50 indicates contraction of the sector.Order backlogs,employment,deliveries and inventories all fell in September.The ISM survey revealed a contraction in electrical appliances,machinery,apparel,furniture and transportation equipment.

Purchasing Managers Graph Slowing Economy

The Institute for Supply Management,a U.S. buyers' trade group,has released its Purchasing Managers Index for September.The manufacturing sector index fell to 52 in September from 52.9 in August,but had been expected to reach 52.5 at a minimum.This indicates continuing ecconomic growth,but at a slower pace than was previously believed.The ISM manufacturing index surveys more than 350 companies.In September,new orders fell to 53.4,down from 55.3 in August.The production index dropped to 54.6 from 56.1.The ISM service sector index for September depicts a similar scene,although it is more significant to the U.S. economy,which is predominantly service-oriented.The September reading was 54.8,down from 55.8 in August.New orders declined to 53.4 from 57.Inventories plummeted from 57 to 50,on account of the decline in orders.These are not recessionary numbers,but seem to support a gentle landing scenario at this late phase of the business cycle.The ISM manufacturing index was seconded by the factory orders report,which showed a drop of 3.3%,versus an expected fall of 2.4%.Investors are looking to multinationals such as IBM or exchange-traded funds such as the iShares Trust FTSE/Xinhua China 25 index(FXI) to get beyond the U.S. slowdown.