21 May 2015
Eurozone PMIs set to improve over the course of 2015 – TDS
FXStreet (Barcelona) - Reviewing the Eurozone flash PMIs release, the TD Securities Team believes that the slight weakness seen in today’s data is likely to be replaced by a improvement on a trend basis over the course of 2015.
Key Quotes
“Today’s Eurozone flash PMIs for May suggested a bit more downside than we were looking for. French services disappointed as we expected as the PMI only rose from 51.4 to 51.6, a few tenth shy of expectations, but there was also more weakness reported in German manufacturing, where the PMI fell from 52.1 to 51.4 and missed the slight acceleration we were tracking.”
“The details were also soft, as Germany reported soft export demand and new orders while French domestic industry struggled to build any momentum.”
“We have been worried of some of the backwash from the disappointing growth in the US in Q1 filtering into some of the global data and this may be one factor, but overall, we would still expect Eurozone PMIs to improve on a trend basis over the course of the year.”
Key Quotes
“Today’s Eurozone flash PMIs for May suggested a bit more downside than we were looking for. French services disappointed as we expected as the PMI only rose from 51.4 to 51.6, a few tenth shy of expectations, but there was also more weakness reported in German manufacturing, where the PMI fell from 52.1 to 51.4 and missed the slight acceleration we were tracking.”
“The details were also soft, as Germany reported soft export demand and new orders while French domestic industry struggled to build any momentum.”
“We have been worried of some of the backwash from the disappointing growth in the US in Q1 filtering into some of the global data and this may be one factor, but overall, we would still expect Eurozone PMIs to improve on a trend basis over the course of the year.”