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Europe and China: A Tale of Two Manufacturing Economies

Per recent manufacturing indicators, Europe's economy may surprise on the upside in 2016, while China is likely to continue stumbling along, says Morningstar's Bob Johnson.

Bob Johnson: This week's chart represents two very divergent manufacturing economies. It shows that China is doing worse and Europe is doing better. This particular chart focuses on a purchasing manager index. What it does is it asks purchasing managers a very simple set of questions: Are things better or worse than they were the month before?