Risk on: China leading PMI could be good thing for growth…

We’ve been strident about the idea that global growth decoupling from the US is a myth. The idea being the US consumer is still the primary demand engine for the world, and Mr. US Consumer becomes all the more important as European demand heads into its austerity shell. But today’s news has us wondering a bit about our stridency.

China’s PMI rebounding above the 50-level this month, surprising some analysts, which includes us. We’d like to chalk it up to “official” Chinese numbers and such, but China growth seems to be validated by the stronger than expected growth reported by Australia this morning, which follows on the heels of weaker than expected growth in Canada. Hmmm … Australia is closer to China and Canada closer to the US; that may have something to do with it.