Forex »

Eurozone PMI on deck

Finances
Share on StockTwits
Published on
www.finances.com
Eurozone PMI on deck

Last month’s PMI data pointed to a mixed outlook for the Eurozone economy, which continues to struggle with near record-high unemployment and regional imbalances. Wednesday marks the release of key Eurozone PMI data courtesy of Markit Group. Economists forecast the Eurozone economy to be largely unchanged this month, a sign recovery was still in its nascent stage at the start of the second quarter.

Markit Group’s composite gauge of Eurozone services and manufacturing is expected to remain unchanged at 53.1, experts say. The gauge of service activity is expected to have risen 0.2 percentage points to 52.4, while the headline manufacturing PMI is expected to hold at 53. Eurozone manufacturers lost some momentum in March, led by slowdowns in Germany, Austria and the Netherlands.

Despite last month’s pullback, hopes are high the currency region is gaining traction in 2014. A return to growth for France’s manufacturing sector and a strong push from Spanish and Italian factories suggest the economy is on pace to hit its growth targets this year.

First quarter PMI data suggest the Eurozone economy expanded 0.3 percent in the first three months of the year, according to Howard Archer of IHS Global Insight. Wednesday’s data will provide investors with another benchmark by which to assess the Eurozone economy, which narrowly escaped an 18-month recession last year. Eurozone GDP contracted 0.5 percent in all of 2013.

The International Monetary Fund has upgraded the Eurozone outlook to 1.2 percent this year and 1.5 percent next year. Growth in Germany is expected to reach 1.7 percent this year, while France’s economy is expected to grow 1 percent, according to the IMF.

Share on StockTwits