Euro area July final services, composite PMIs likely to have remained same as flash readings

Euro area’s services and composite PMIs are likely to have confirmed the flash figures for the month of July. According to a Societe Generale research note, the services PMI for the currency bloc is expected to come in at 52.7, whereas composite PMI is likely to be 52.9 in July. Services and composite PMIs for the month of June were 52.8 and 53.1.

The final PMIs for the member nations France and Germany are unlikely to have changed in July, with both the nations indicating an improvement in the month. On the contrary, PMIs in Italy and Spain are expected to have softened in the month due the hovering political uncertainties, particularly in Spain, and the woes of banking sector in Italy, stated Societe Generale.

However, indices of Spain continue to be at high levels, indicating strong growth. In all, the PMI indexes for the currency bloc are historically in line with GDP growth of about 0.3 percent  quarter-on-quarter (1.3 percent year-on-year), a bit lower than the projection of 0.4 percent quarter-on-quarter for the third quarter, added Societe Generale.