Tuesday, April 30, 2019

“U.S. and Chinese Manufacturing Stabilize, While Europe Lags Behind”


The article “U.S. and Chinese Manufacturing Stabilize, While Europe Lags Behind” was published in The Wall Street Journal by Paul Kiernan & Paul Hannon on April 1, 2019, at 7:19 p.m. The article talks about how the United States and Chinese factory sectors have been able to stabilize within he past few weeks, which is something that brought about a large rally among U.S. stocks when investors had prepared for something much worse. It then discusses the positive effect that this has had on investors, treasury bonds, and the inverted yield curve that were all projected to suffer much more than they are at the moment. The previous manufacturing industry in February in the United States was at 54.2, rising to 55.3 the next month, giving hope that it will only continue to do the same as this index works on how manufacturing supply managers view their companies as expanding or contracting. The numbers above 50 are positive, considering that they have to do with expansion, and the index for managers in China has been promising, as it has been able to hit 50.5 in March from an increase from February at 49.2. However, this was not something that was experienced in Europe, as they felt the opposite effect, with their rate in March at 47.5 having decreased from that in February at 49.3. The article talks about how authorities have tried to stimulate activity by cutting taxes and lifting spending, as these are things that were done in China in order to change the rates, and were seen as effective. The piece does a great job at demonstrating how these changes in the manufacturing industry are directly related to marketing in that those who are invested in these nations in any way whatsoever are bound to feel the changes that they are experiencing, whether they be positive or negative. In addition to this, those who are working directly with the issue in Europe have to be able to take inspiration from the other nations such as China, referenced in the piece, in order to repair this problem and make the same progress that they have been able to make over the past few months in experiencing this expansion.

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