Daily Economic Outlook- 07 April, 2015

Following the Easter break the services PMI data for the euro area (0800 GMT) and the UK for March (0830 GMT) will provide further updates on economic activity. The already released 'flash' indicator for the euro area rose for fourth successive month as it touched its highest level since May 2011. The 'final' estimate is expected to be unrevised. The rebound in services activity is a signal that the pickup in euro area activity is fairly widespread.   

"In the UK the services is forecast to rise modestly to 57.2 from 56.7 in February. This will still leave it below its level in January but means that the Q1 average exceeds that of the previous quarter", says Lloyds Bank.  

Official monthly data released to date for Q1 and the PMIs are sending out somewhat contrasting signals. The former suggest that economic growth has been rather sluggish in early 2015, while the PMIs point to activity at least as strong as late last year. As long as the PMIs remain at currents levels the BOE is likely to assume that the official data will likely be revised up.   

It is quiet day for US data. While the JOLTS labour market turnover data (1500 GMT) is known to be a favourite of Fed Chair Yellen, the fact that it is for the month prior to Friday's payrolls data will limit its market input. Minneapolis President Kocherlakota is due to speak but his dovish views are well known.