Euro zone PMI review

Today Euro zone PMI released across Europe showed improvement is continuing across countries.

France -

• Economic activities continue to weaken. Manufacturing PMI contracted by 48.2, however growth is seen in services sector, where PMI registered 52.4. Composite PMI lower than previous at 51.7.
• Export orders at manufacturing decreased further.
• Employment in the private sector rose first time in 17 months.
• Rate of cost inflation accelerated to three month high, however prices charged dropped further but at a much slower rate.

Germany -

• German private sector output grew at strongest rate in eight months. Manufacturing PMI came at 52.8, eight month high. Services PMI printed 55.3, six month high. Composite PMI moved to eight month high at 55.3.
• New manufacturing export orders rose at sharpest pace, thanks to weaker Euro.
• Input cost rose after three months of falling and companies raised the prices charged for a second month. Stocks of finished goods registered strongest drop in two years.
• Employment rose, however rate of job creation has eased.

Euro zone -

• Euro zone manufacturing PMI output index rose to 53.5, ten month high. Manufacturing PMI rose to 51.9. Euro zone services PMI rose to 46 month high at 54.3. Composite PMI came at 54.1.
• Deflationary pressure is easing, prices charged fell at slower pace. Both input and output prices rose for manufacturing.
• Growth registered fastest rate in four years. Employment outlook improved.

Euro zone recovery is showing strength across regions. This outlook is very favorable to European assets namely stocks. German DAX is expected to outperform other peers as German economy remained robust.

Improved economic growth is very positive for Euro over long term. Euro is currently trading at 1.099, up 0.4% today.