2 May 2016
European April PMIs are not expected to bring much of a surprise - Rabobank
Michael Every, Head of Financial Markets Research at Rabobank, suggests that as opposed to Eurozone GDP –which at 1.6% grew more than expected in Q1– European April PMIs are not expected to bring much of a surprise, given that the preliminary estimates had already been released.
Key Quotes
“Soft data like these PMIs continue to point to expansion, but also indicate that the pace of this expansion has slowed since the start of the year. We’re therefore not yet able to fully reconcile these numbers with the stronger Q1 GDP reading.
Overnight, the official Chinese PMI already came in a tad weaker, edging back to a near-neutral 50.1 – although official data have historically seen an optimistic bias when compared to the Caixin numbers, so the ‘true’ value could possibly lie in the contractionary area; let’s see what Caixin/Markit estimate tomorrow. Meanwhile, Japan’s manufacturing PMI showed marginal improvement (although the absolute level remains depressed).”
Key Quotes
“Soft data like these PMIs continue to point to expansion, but also indicate that the pace of this expansion has slowed since the start of the year. We’re therefore not yet able to fully reconcile these numbers with the stronger Q1 GDP reading.
Overnight, the official Chinese PMI already came in a tad weaker, edging back to a near-neutral 50.1 – although official data have historically seen an optimistic bias when compared to the Caixin numbers, so the ‘true’ value could possibly lie in the contractionary area; let’s see what Caixin/Markit estimate tomorrow. Meanwhile, Japan’s manufacturing PMI showed marginal improvement (although the absolute level remains depressed).”