A series of Purchasing Managers’ Index (PMI) reports were released on Monday by Markit for the month of March for the Eurozone. Particular attention was paid to the German and French PMIs.
France’s manufacturing and services flash PMI readings both rose back above the 50 level which demarcates expansion from contraction. The preliminary reading of manufacturing PMI came in at 51.9 while the flash services index printed a reading of 51.4. Output and new orders returned to growth at the largest monthly pace since August 2011.
However, the positive French data were negated by disappointing German PMIs. Europe’s largest economy showed signs of slowing, with a flash manufacturing PMI reading falling to a 4-month low of 53.8, below a prior 54.8. Meanwhile Germany’s flash services PMI fell to a 2-month low of 54.0 from a prior 55.9. Consequently, Germany’s cmposite index reported at 55.0 in March, down from 56.4 in February.
The flash Eurozone composite PMI for March dipped to a 2-month low of 53.2 from February’s 32-month high of 53.3. Overall, the Eurozone business recovery appears to continue to remain strong as the composite PMI index remains above 50 in expansionary territory.
Chris Williamson, Chief Economist at Markit, commented that while the data are overall encouraging, there are concerns about low inflation. “With prices charged by manufacturers and service providers both falling again in March, there remains an argument for further stimulus, especially if the rate of growth of activity cools again in April,” said Williamson.
The euro was briefly lifted above 1.38 after the French PMIs but fell back down after the disappointing German PMIs to touch as low as 1.3762.
A series of Purchasing Managers’ Index (PMI) reports were released on Monday by Markit for the month of March for the Eurozone. Particular attention was paid to the German and French PMIs.
France’s manufacturing and services flash PMI readings both rose back above the 50 level which demarcates expansion from contraction. The preliminary reading of manufacturing PMI came in at 51.9 while the flash services index printed a reading of 51.4. Output and new orders returned to growth at the largest monthly pace since August 2011.
However, the positive French data were negated by disappointing German PMIs. Europe’s largest economy showed signs of slowing, with a flash manufacturing PMI reading falling to a 4-month low of 53.8, below a prior 54.8. Meanwhile Germany’s flash services PMI fell to a 2-month low of 54.0 from a prior 55.9. Consequently, Germany’s cmposite index reported at 55.0 in March, down from 56.4 in February.
The flash Eurozone composite PMI for March dipped to a 2-month low of 53.2 from February’s 32-month high of 53.3. Overall, the Eurozone business recovery appears to continue to remain strong as the composite PMI index remains above 50 in expansionary territory.
Chris Williamson, Chief Economist at Markit, commented that while the data are overall encouraging, there are concerns about low inflation.
“With prices charged by manufacturers and service providers both falling again in March, there remains an argument for further stimulus, especially if the rate of growth of activity cools again in April,” said Williamson.
The euro was briefly lifted above 1.38 after the French PMIs but fell back down after the disappointing German PMIs to touch as low as 1.3762.
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