20 Feb 2015
Higher Eurozone PMIs support the stronger recovery view - Danske
FXStreet (Barcelona) - According to Pernille Bomholdt Nielsen, Senior Analyst at Danske Bank, the improving PMIs and the expected increase in Manufacturing PMIs ahead, signals towards a stronger Q1 growth in the Eurozone.
Key Quotes
“The euro area composite PMI increased to 53.5 in February from 52.6 in January and is now at the highest level since summer last year. The increase was driven by the services PMI, which rose to 53.9 from 52.7 whereas the manufacturing PMI was almost unchanged at 51.1.”
“For the manufacturing PMI the details were better than the headline figure. First, new orders increased a bit, driven by higher export orders.”
“Added to this, there was a decline in stocks of finished goods implying the order-inventory balance increased. This now points to an increase in manufacturing PMI going forward.”
“The stronger services PMI was driven by higher future business expectations and incoming new business, but there was also an increase in backlog of work. The services PMI employment index increased to the highest level since May 2011.”
“The increase in services PMI is likely to reflect the boost to private consumption from the decline in the oil price and it suggests private consumption will increase further in Q1.”
“The improvement in the PMIs and the signal that manufacturing PMI could increase further is in line with our view that euro GDP growth will be strong in Q1.”
“For 2015 we expect GDP growth of 1.5% which is above consensus at 1.2%.”
Key Quotes
“The euro area composite PMI increased to 53.5 in February from 52.6 in January and is now at the highest level since summer last year. The increase was driven by the services PMI, which rose to 53.9 from 52.7 whereas the manufacturing PMI was almost unchanged at 51.1.”
“For the manufacturing PMI the details were better than the headline figure. First, new orders increased a bit, driven by higher export orders.”
“Added to this, there was a decline in stocks of finished goods implying the order-inventory balance increased. This now points to an increase in manufacturing PMI going forward.”
“The stronger services PMI was driven by higher future business expectations and incoming new business, but there was also an increase in backlog of work. The services PMI employment index increased to the highest level since May 2011.”
“The increase in services PMI is likely to reflect the boost to private consumption from the decline in the oil price and it suggests private consumption will increase further in Q1.”
“The improvement in the PMIs and the signal that manufacturing PMI could increase further is in line with our view that euro GDP growth will be strong in Q1.”
“For 2015 we expect GDP growth of 1.5% which is above consensus at 1.2%.”