So much for the huge China credit impulse spreading around the world. After this morning’s extremely disappointing European data, US Manufacturing’s flash PMI for May printed a disappointing 50.5 – its lowest since 2009.Under the surface the state of American manufacturing is even more disastrous as Markit notes,

output is falling for the first time since the height of the global financial crisis, with factories hit by slowing growth of order books and falling exports. It’s rate-hiking time…A general lack of pressure on operating capacity was signalled by the latest survey data, with outstanding work at U.S. manufacturers falling for the fourth successive month in May. READ MORE