You take the same economic data on China´s economy, and some economists sees doom and gloom, and others hope and glory. We are actually looking at the wrong data, says economist Arthur Kroeber, and the right ones are not available, he tells CNBC.
“The point is to recognize there’s a structural transition going on,” said Arthur Kroeber, head of research at Gavekal Dragonomics. “And the problem we have is the data we have on the bad part of the economy is actually pretty developed. The data on services (is) much better but fuzzier.”
Most of the economic reports still focus on manufacturing-related aspects of the economy, such as electricity use and the producer price index. Data such as the Caixin nonmanufacturing PMIprovide some light on services, which continued to hold above the 50 expansion/contraction line in August. Manufacturing PMI fell below that line.
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