6 May 2015
Eurozone PMIs supporting the Q2 recovery view – BBH
FXStreet (Barcelona) - Reviewing the Euro area services PMI release, the Brown Brothers Harriman Team note that the improvement in eurozone services PMI to 54.1 signals that the Q1 recovery is continuing into Q2.
Key Quotes
“Evidence that the eurozone recovery in Q1 is continuing into Q2 can be found in the PMI data. The service PMI rose to 54.1 from 53.7 flash reading and practically no change from the 54.2 in March.”
“The March reading matched the July reading from last year, which is the high for this short time series. This followed a small tick up in the manufacturing PMI reported last week from the flash reading as well. The composite was essentially unchanged at 53.9 from 54.0 in March.”
“Turning briefly to the country PMI breakdown, Germany's reading was shaved from the flash while France’s was revised higher. More interesting is the improvement in Spain and Italy. Spain service PMI rose to 60.3 from 57.3, which is an eight-year high. Output is the best since November 2006. New orders are the highest since June 2000. Employment also stood at multi-year highs.”
“Italy's reading rose to 53.1 from 51.6. This is the highest since last June and follows the stronger than expected manufacturing survey out last week.”
Key Quotes
“Evidence that the eurozone recovery in Q1 is continuing into Q2 can be found in the PMI data. The service PMI rose to 54.1 from 53.7 flash reading and practically no change from the 54.2 in March.”
“The March reading matched the July reading from last year, which is the high for this short time series. This followed a small tick up in the manufacturing PMI reported last week from the flash reading as well. The composite was essentially unchanged at 53.9 from 54.0 in March.”
“Turning briefly to the country PMI breakdown, Germany's reading was shaved from the flash while France’s was revised higher. More interesting is the improvement in Spain and Italy. Spain service PMI rose to 60.3 from 57.3, which is an eight-year high. Output is the best since November 2006. New orders are the highest since June 2000. Employment also stood at multi-year highs.”
“Italy's reading rose to 53.1 from 51.6. This is the highest since last June and follows the stronger than expected manufacturing survey out last week.”