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21 Aug 2015
Uncertainties remain in EMU despite PMI – ING Bank
FXStreet (Edinburgh) - Analyst at ING Bank Teunis Brosens has assessed the recently published flash PMI in the euro bloc.
Key Quotes
“Defying expectations, the Eurozone composite PMI managed to eke out a slight increase. According to flash estimates, the composite PMI rose to 54.1 from 53.7 last month. The improvement was entirely driven by the services sector (PMI rising to 54.3 from 54.0), with manufacturers’ sentiment unchanged on the month”.
“It remains to be seen however to what extent the good news show from soft data translates into hard data. Eurozone industrial production for example has weakened in recent months, despite the firming of the manufacturing PMI”.
“Moreover, while there are definitely positives for Eurozone producers, such as the renewed fall in oil prices and scope for stronger domestic demand, uncertainties remain”.
“China’s slowdown in particular is a source of concern. And as the announcement of snap elections by Greek PM Tsipras yesterday shows, even within the Eurozone, surprises and uncertainty are never far away”.
Key Quotes
“Defying expectations, the Eurozone composite PMI managed to eke out a slight increase. According to flash estimates, the composite PMI rose to 54.1 from 53.7 last month. The improvement was entirely driven by the services sector (PMI rising to 54.3 from 54.0), with manufacturers’ sentiment unchanged on the month”.
“It remains to be seen however to what extent the good news show from soft data translates into hard data. Eurozone industrial production for example has weakened in recent months, despite the firming of the manufacturing PMI”.
“Moreover, while there are definitely positives for Eurozone producers, such as the renewed fall in oil prices and scope for stronger domestic demand, uncertainties remain”.
“China’s slowdown in particular is a source of concern. And as the announcement of snap elections by Greek PM Tsipras yesterday shows, even within the Eurozone, surprises and uncertainty are never far away”.