Euro PMIs: Confirming slower momentum – Deutsche Bank

Peter Sidorov, Economist at Deutsche Bank, notes that the September euro area composite PMI was unchanged on the flash print of 52.6 (Aug 52.9).

Key Quotes

In yesterday’s services PMI Spain and Italy posted notable declines, as suggested by the flash print, although for Italy this was sharper than the consensus expectation. Germany and France saw a moderation of their respective monthly fall/rise in the flash services reading.

The PMIs are consistent with euro area GDP growth of +0.3% qoq in Q3 and, if they remain at current levels, in Q4 – in line with our projections. However, hard data including the August retail sales print this morning have been on balance less positive which adds extra focus on the August industrial production prints due over the next week.”