Eurozone likely to post 0.3 % q/q GDP growth in Q1

Eurozone's February flash PMIs decreased as the composite flash PMI came in at 52.7 as compared to previous months 53.6. The manufacturing PMI declined from 52.3 in January to 51.0 in February as Germany's manufacturing PMI decreased from 52.3 to 50.2, while France remained at a moderate level.

Services remained unexpectedly strong as Eurozone's February flash PMI was at 53.0 against previous month's print of 53.6. German's flash services PMI edged up to 55.1 in February as compared to 55.0 in January. However, the service sector in France has not improved as it still recovering from the effects of November terror attacks.

"If we paste the Euro-area composite PMI in our GDP regression model, we arrive at an estimate of 0.3 % q/q growth in Q1. That would indicate the growth to continue at the level of end-2015" says Nordea Bank in a research note.