20 Feb 2015
Eurozone services sector growing stronger – TDS
FXStreet (Barcelona) - The TD Securities Team reviews the Eurozone PMI data releases, noting that German and France PMIs point towards a more positive picture for the respective economies.
Key Quotes
“The Eurozone composite PMI was broadly in line with expectations but with the services sector showing signs of growing stronger.”
“The fall in output prices fell compared to last month while expectations of business activity in the year ahead rose to the highest since May 2011.”
“The German manufacturing PMI disappointed consensus expectations remaining at 50.9 but the details look pretty good. New orders rose by the most in five months while some of those surveyed pointed too the boost for a weaker euro.”
“Work outstanding and employment both rose, as did output prices with the rate of change in inflation at its highest level in eight months in spite of falling input prices, with some exporters raising prices to boost margins given the weaker EUR.”
“So overall, growth in Germany doesn't look as positive as it had in parts of last year, but this is a pretty solid report.”
“In France, the PMIs were mixed. The services PMI rose to 53.4 from 49.9 (consensus: 49.9) while the manufacturing PMI fell to 47.7 from 49.2 (consensus: 49.6).”
“The details pointed a more positive picture of the French economy. Business expectations are at their highest in 35 months (albeit below long-run averages, the rate of expansion in new work was the sharpest in 3 and a half years while backlogs of work rose to the highest level for 3 and a half years.”
“Output prices were soft, however, falling at their fastest pace since October 2009, with the falls broad-based across the manufacturing and services sectors.”
Key Quotes
“The Eurozone composite PMI was broadly in line with expectations but with the services sector showing signs of growing stronger.”
“The fall in output prices fell compared to last month while expectations of business activity in the year ahead rose to the highest since May 2011.”
“The German manufacturing PMI disappointed consensus expectations remaining at 50.9 but the details look pretty good. New orders rose by the most in five months while some of those surveyed pointed too the boost for a weaker euro.”
“Work outstanding and employment both rose, as did output prices with the rate of change in inflation at its highest level in eight months in spite of falling input prices, with some exporters raising prices to boost margins given the weaker EUR.”
“So overall, growth in Germany doesn't look as positive as it had in parts of last year, but this is a pretty solid report.”
“In France, the PMIs were mixed. The services PMI rose to 53.4 from 49.9 (consensus: 49.9) while the manufacturing PMI fell to 47.7 from 49.2 (consensus: 49.6).”
“The details pointed a more positive picture of the French economy. Business expectations are at their highest in 35 months (albeit below long-run averages, the rate of expansion in new work was the sharpest in 3 and a half years while backlogs of work rose to the highest level for 3 and a half years.”
“Output prices were soft, however, falling at their fastest pace since October 2009, with the falls broad-based across the manufacturing and services sectors.”