China’s central government said its PMI growth slowed in December, which confirmed similar data released last week by HSBC. China may use the data to show that it does not need to allow the yuan to float–its pace of expansion has slackened on its own. The People’s Republic may claim that the tightening of its monetary policy has worked, to create a soft landing of sorts and undermine inflation.

PMI fell to 53.9 in December, which was below most expectations, from 55.2 in November.

One month does not a trend make. There is always January and the balance of the new year.

Douglas A. McIntyre