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Eurozone PMI Rises

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Eurozone PMI Rises

Markit Economics have released this months Purchasing Managers Indices (PMI)for several Eurozone countries as well as the Eurozone as a whole. The headline Eurozone Composite number has come in at 54.0, this is a gain of 0.9 on last months 53.1 and provided a positive surprise to markets that had expected no change on the month. Splitting this composite figure into it’s constituent parts shows that the gain came primarily from the Services sector which printed at 53.1 for the month, up 0.9 on March and against an expectation of just 52.4. The Manufacturing number also provided a gain of 0.3 to 53.3, no change from last month’s 53.0 had been expected.

Earlier this morning Markit Economics published individual PMI reports for both Germany and France. The strongest gains were provided by the German Services sector which rose 2.0 to 55.0 from March’s 53.0, markets had only been anticipating a 0.4 rise on this indicator. The German Manufacturing sector did not fare to badly either, this months figure was up 0.5 to 54.2 beating estimates for 54.0.

France on the other hand has posted a reduction in it’s PMI data for the month of April. The French Services PMI dropped by 0.6 to 50.3 taking the market by surprise as no substantial change had been expected. The Manufacturing number has not fared any better, this has also fallen by the same amount to 50.9, again markets were not anticipating any substantial drop in this indicator for France.

There is no surprise that the German economy is proving to be more robust than that of France at present. The positive in this is that it appears that the strength of the German numbers easily outweigh the weakness in the French data. The fact that the total Eurozone figure rose bodes well for both economies due to the close interdependence of these economies.

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