China gets much more favorable and optimistic stories in the news than the US does.  Recently, China’s Federation of Logistics and Purchasing announced the the country’s purchasing managers index (PMI) increased to 45.3 in January, up from 41.2 in December.  That represented a 9.95% increase in the manufacturing sector, although still less than the 50 that is inflection point for expansion and contraction of the sector.  So, north of 50 – expanding, south of 50 – contracting.  If you read the news articles surrounding the release, you notice that they focus on the fact that the number isn’t as bad as December and they talk of the recovery having begun.

This is in stark contrast to the US’s recent release of its PMI numbers – see story below.  The US soundly beat expectations, posted an improvement over December (8.21%) and the media could only focus on the fact that we were contracting and not expanding.  There may still be some pain to endure through this downturn, however, there are some bright spots.  You just have to look very hard in the traditional media to find them.

Keep up the good work China.  You make it and we’ll buy it.