Eurozone: Strong PMI data paints robust economic picture - ANZ

Analysts at ANZ note that the euro area composite PMI index rose to 56 – its highest level since April 2011 and the increase was mainly driven by a big rise in the services PMI.

Key Quotes

“At face value, it suggests a pick-up in economic growth during Q1. However, the survey’s price indices remained consistent with only weak inflationary pressures. In contrast, the US flash Markit Manufacturing PMI for February came in weaker than expected at 54.3, with output and new orders both down. Nevertheless levels are still elevated compared to historical norms and show that manufacturing output continues to expand.”

“In addition, the inventory data suggests output could pick up in the future with stocks of finished goods dropping. In the UK a smaller than expected budget deficit for January combined with the current account deficit showing some signs of improvement.”