I just posted on remarks on the euro via Commerzbank analysis:
Just to add a little more on those PMIs out in Europe on Thursday, this via Pantheon Economics (in brief):
manufacturing PMI fell further, to 49.2 from 50.2 in January, reflecting ongoing weakness in the global industrial sector
- manufacturing is not only about exports in the euro area, so the evidence of accelerating weakness here is not good news given how important this sector is for the overall health of the economy. Production and new orders are now falling steadily, driving a reduction in the purchase of stocks and a fall in work backlogs. Employment is still rising, but this won't persist if these headlines continue.
services PMI increased to 52.3, rom 51.2 in January
- both the inflow of new orders and optimism rebounded this month, indicating that sectors less exposed to the whims of global manufacturing and industrial cycles are doing better
Overall, we think consumers' spending will be a pillar of support for the EZ economy in the first half of the year.
