Eurozone: Survey data running ahead of real sector data - BBH

According to analysts at BBH, in the Eurozone, survey data has been running ahead of real sector data.  

Key Quotes

“German industrial output likely fell, though there was a little sign from the PMI.  The final March PMI was steady at 56.2, even though French readings softened.  Spain fell but this was offset by Italy’s rise.  February retail sales are expected to soften.  The unemployment rate may ease to 9.5% from 9.6%.  It peaked a little above 12%.”

“These real sector reports are of little significance in the current environment.  The key is the reaction function of the European Central Bank, and it is not presently about the real sector, but prices.  The weaker than expected preliminary March CPI report dealt a blow to the hawks, who seemingly had been pressing to begin the exit from the unorthodox policies even before the asset purchases are complete.  The record of the recent ECB meeting will be released, and it will likely show that the hawks remain in a small minority.”