July PMI Figures Reinforce Macro Strategy

BMI View: The latest round of PMI data lend weight to our call for a significant manufacturing slowdown across Asia in H211 and 2012. Moreover, the steep plunge in Taiwan's PMI print - to its lowest level since January 2009 - reinforces our conviction that economies in the region heavily leveraged to China's growth story are most at risk of a sharp correction in headline activity. We are happy, therefore, to remain below consensus on the region's growth prospects this year and next, forecasting simple average real GDP expansion of 5.6% and 5.3%, respectively.

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