Euro area PMIs have been relatively stable – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, suggests that the Euro area PMIs have been relatively stable since the start of the year.

Key Quotes

“The composite reading has shown little deviation from its (year-to-date) average of 53.1, reflecting an increasingly resilient euro area recovery to external events but also a lack of any discernable pick-up in momentum. The aggregate reading does also disguise divergence below the surface, in particular continued relatively strong German readings which, to a certain extent, have compensated for weaker French ones, particularly in the manufacturing sector, a feature which should continue this month. For the euro area print, we see a slight deterioration in both the services and manufacturing prints to 52.8 and 51.5, respectively, in September, which would leave the composite reading similarly little changed.”