Hans-Jörg Naumer (Allianz Global Investors) | We still believe it’s quite likely that the world economy continues to grow, albeit weakly. However, in the second half of 2022, the risks of a slowdown in the short-term have substantially increased. A continued heightening of geopolitical crises and the consequent rise in the prices of energy and food, could cause a sharp decline in the European economy, already in difficulty, and even in the…
The Eurozone’s manufacturing PMI rose in May to 63.1 points from 62.9 points in April. May’s final reading is the highest ever for this indicator. In the case of Spain, the manufacturing PMI rose to 59.4, its highest level since May 1998.
Activity slowed in November in many European countries, but remained at a relatively fast speed of expansion in most economies, except for Spain and France, where manufacturing activity contracted. Two surprises are worth mentioning: Sweden and Switzerland saw a stronger acceleration of manufacturing activity in October.
European markets have opened higher this morning following some upbeat PMI data. Readings above 50 indicate growth and while the readings for Germany stopped just short, France’s numbers cleared that important level. France’s CAC 40 is up 1.6%, the UK benchmark FTSE 100 is up 0.8% but leading the way is the German Dax up over 2%.
David A. Meier (Julius Baer) | Preliminary purchasing managers’ indices (PMIs) show that economic momentum has bottomed out from record-low levels in May, after corona-containment measures were eased. Nevertheless, levels are still in contraction territory. Even if PMIs recover to expansion in the next months, it will take some quarters until growth is restored at pre-crisis levels.
CaixaBank Research | The weakness of the industrial sector, which we have recently analysed, is one of the major factors behind the slowdown in the global economy and, in particular, that of the euro area. However, the resilience exhibited by the services sector, which accounts for the bulk of economic activity,continues to drive growth and gives continuity to the expansion. But just how resilient has the services sector really proven to be? Is there a risk of contagion from industrial weakness?
Eurozone’s economy remains stuck near the stagnation at the beginning of the fourth quarter of the year. The demand for products and services has fallen for the second consecutive month, according to the latest data from Markit’s PMI index.
CdM | Economic growth in the Eurozone manufacturing sector continued to contract in July, and did so at the fastest rate since December 2012, according to the latest PMI index. Germany remained a source of weakness, registering its largest deterioration in 7 years.
Weak demand remains the key to the lack of inflationary pressures in the Eurozone.
Composite and Services PMI, which is elaborated by the consultancy IHS Marlon, exceeded expectations for Spain. The PMI for services rose from 54.5 in February to 56.8 in March compared to the expected 55.