Euro area’s composite and services PMI figures for February likely closer to flash reading

Euro area's flash composite and services PMI for had fallen marginally from the December's figures. However, they were still consistent with a resilient euro area economy. The final release is expected to closer to the flash reading, maybe falling by two ticks t o 52.5 for the composite PMI. This will be consistent with euro area's GDP growth of 0.3% q/q in Q1 2016.

The figure for the euro area is expected to have been dragged down by a weak reading of France's services PMI. However, that is expected to be upwardly revised from the flash reading due to the major discrepancy with the strong INSEE survey.

"We expect a significant fall in the Italian and Spanish services figures to 53.0 (from 53.6 in January) and 54.0 (from 54.6) respectively. Taking into account the Ifo survey, the German services PMI is also likely to be revised down, from 55.1 to 54.6", says Societe Generale.