Eurozone: Manufacturing PMI printed 57.4 for August - BBH

EMU's manufacturing PMI was unchanged from the flash reading of 57.4 after 56.6 in July as export orders and firm domestic demand point underpin the European factories, explains the analysis team at BBH.  

Key Quotes

“In terms of country breakdown, German's flash reading of 59.4 was shaved to 59.3.  It is still quite strong.  France was unchanged from the flash reading of 55.8.  The new news was from Spain and Italy.  Spain disappointed with a 52.4 manufacturing PMI, down from July's 54.0.  Italy offered an upside surprise, with a jump to 56.3 from 55.1, a new multi-year high.”

“The data is unlikely to change expectations for next week's ECB meeting.  Many, like ourselves, expect the ECB to announce that its asset purchases will be extended though at a slower pace in 2018.  Others expect a hint of this next week, but a formal decision may not be made until October.  In terms of amounts, we have argued that by cutting the amount in half to 30 bln a month, it would give the central bank the maximum flexibility to stop in June.  However, a reduction to 40 bln euros a month would likely mean the buying spills over into H2 18.”