SPEU - Eurozone PMIs Show Very Tentative Signs Of Bottoming Out
2024-01-24 09:18:00 ET
Summary
- The eurozone economy continues to trend around 0% growth and there are no signs of any imminent recovery.
- Price pressures are still increasing for the service sector, which provides another argument for the ECB not to cut before June.
- The PMI continues to show some concern around inflation.
By Bert Colijn
How you read today’s PMI release for the eurozone reveals whether you’re an optimist or a pessimist. The increase from 47.6 to 47.9 in the composite PMI for January cautiously shows signs of bottoming out, but also still indicates contraction. We also note that France and Germany saw declining PMIs, making the increase dependent on the smaller markets. Manufacturing price pressures remain moderate despite the Red Sea disruptions, but the service sector indicates another acceleration in input costs....
Eurozone PMIs Show Very Tentative Signs Of Bottoming Out