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23 Jan 2015
Eurozone PMI moving in the right direction again – ING
FXStreet (Barcelona) - Teunis Brosens of ING, explains that the above expectation Eurozone PMI print at 52.2 signals that the eurozone area growth is picking up pace, with the current PMI consistent with about 0.2% quarterly growth.
Key Quotes
“After two months of decline, the January composite PMI outperformed expectations and rose to 52.2. This suggests that the feeble pace of economic growth in the Eurozone is starting to pick up again.”
“The recovery however remains uneven, with the German composite PMI rising but the French one falling back again. The average for the rest of the region improved sharply in January, which raises hopes that the recovery in the periphery is strengthening.”
“Both the manufacturing and services component improved in January. The rise in the manufacturing PMI was driven entirely by a 2-point improvement in France, although at 49.5 the French manufacturing sector is still lagging its German counterpart, where the PMI slipped slightly to 51.0. This suggests that the manufacturing PMI in the rest of the region was little changed.”
“The rise in the Eurozone services PMI was mostly driven by countries outside France and Germany. The German services PMI rose slightly whereas the French services PMI slipped back below the 50 breakeven level, underlying the fragility of the French domestic economy.”
“At current levels, the Eurozone PMI is consistent with about 0.2% quarterly growth.”
“Looking ahead, the sharply lower oil price, the continuing weakening of the euro (which is down nearly 10% in trade-weighted terms since March last year) and fresh ECB stimulus should shift the Eurozone economy in a faster gear in the course of this year.”
Key Quotes
“After two months of decline, the January composite PMI outperformed expectations and rose to 52.2. This suggests that the feeble pace of economic growth in the Eurozone is starting to pick up again.”
“The recovery however remains uneven, with the German composite PMI rising but the French one falling back again. The average for the rest of the region improved sharply in January, which raises hopes that the recovery in the periphery is strengthening.”
“Both the manufacturing and services component improved in January. The rise in the manufacturing PMI was driven entirely by a 2-point improvement in France, although at 49.5 the French manufacturing sector is still lagging its German counterpart, where the PMI slipped slightly to 51.0. This suggests that the manufacturing PMI in the rest of the region was little changed.”
“The rise in the Eurozone services PMI was mostly driven by countries outside France and Germany. The German services PMI rose slightly whereas the French services PMI slipped back below the 50 breakeven level, underlying the fragility of the French domestic economy.”
“At current levels, the Eurozone PMI is consistent with about 0.2% quarterly growth.”
“Looking ahead, the sharply lower oil price, the continuing weakening of the euro (which is down nearly 10% in trade-weighted terms since March last year) and fresh ECB stimulus should shift the Eurozone economy in a faster gear in the course of this year.”