Euroarea: Mixed risks to consensus for flash PMIs - TDS

Research Team at TDS, suggests that the Euro area flash PMIs are released, and they see mixed risks to consensus as firms adjust their activity to a post-Brexit Europe.

Key Quotes

“The French services PMI likely posted a decline to 49.0 (consensus: 49.5) as it reflects spillovers from weaker UK sentiment, leaving it below 50 for the second consecutive month.

We expect the German manufacturing PMI to fall to 53.2 (consensus: 53.4), with sentiment spillover effects more contained.

The ECB’s Survey of Professional Forecasters is also released, which the ECB had access to at this week’s policy meeting. Draghi revealed at the press conference on Thursday that there was no impact from Brexit on long-term inflation expectations: they remained unchanged at 1.8%.”