Gavekal Capital: Divergence: German Construction Output versus Construction PMI

Thursday, April 9, 2015

Divergence: German Construction Output versus Construction PMI

Historically, there has been a fairly strong relationship in the trends of German construction output and the results of Markit's PMI Construction survey. However, yesterday's positive data release of the construction PMI painted a much different picture of the sector than today's release of industrial (and construction) ouput:

While this could be a temporary aberration, our interest is always peaked when survey or opinion data differ significantly from solid, fact-based numbers.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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