Eurozone: Flash PMI improved - BBH

Research Team at BBH, notes that the Eurozone flash PMI improved, which is consistent with the continued trend growth in the area. 

Key Quotes

“The composite PMI rose to 53.7 from 52.6., which is the best of the 2016 and well above the consensus of 52.8.  Germany's rebounded smartly.  The manufacturing PMI rose to 55.1 from 54.3, well above expectations and the strongest reading since Q1 14.  The services PMI jumped to 54.1 from 50.9, the single biggest monthly rise in this three-year-old time series.    The composite rose to 55.1 from 52.7, completely recovered from the August and September pullback.  Separately, we note that the latest polls suggest Merkel's support has improved, and the better economic performance will not hurt.

The flash French PMI was less inspiring.  The good news is that manufacturing recovered above the 50 boom/bust level for the first time since February.  It averaged 48.9 in Q3 and 48.2 in Q2.  In October it stood at 51.3.  The service PMI fell to 52.1 from 53.3.  It is the lowest since July, and just above the Q3 average of 52.0.  This pushed the composite to 52.2 from 52.7.”