23 Jun 2014
Eurozone growth momentum easing further - ING
FXStreet (Łódź) - Martin van Vliet comments on the drop in Eurozone PMI numbers released today saying that they indicate a slowdown in both the domestic and external demand.
Key quotes
"Is the best of the Eurozone recovery behind us? The Eurozone composite PMI fell for a second straight month in June, according to a flash estimate."
"The larger-than-expected decline in the headline index, from 53.5 to 52.8 (consensus: 53.4), was mainly driven by a 0.4 point drop in the domestic demand-sensitive services component."
"However, the manufacturing PMI also slipped, from 52.2 to a 7-month low of 51.9. This suggests that external demand may also be losing some steam."
"Despite the further drop in the overall Eurozone composite PMI, the index remains comfortably in growth territory. Indeed, on past form it is still consistent with quarterly GDP growth of about 0.3%."
"Consequently, we still expect second-quarter GDP growth in the Eurozone to be higher than the 0.2% QoQ increase seen in Q1."
"However, the pace of recovery is slowing down. The further weakening of the PMI vindicates the ECB’s recent decision to implement further monetary easing and will keep fears of a Japanification of Europe firmly alive."
Key quotes
"Is the best of the Eurozone recovery behind us? The Eurozone composite PMI fell for a second straight month in June, according to a flash estimate."
"The larger-than-expected decline in the headline index, from 53.5 to 52.8 (consensus: 53.4), was mainly driven by a 0.4 point drop in the domestic demand-sensitive services component."
"However, the manufacturing PMI also slipped, from 52.2 to a 7-month low of 51.9. This suggests that external demand may also be losing some steam."
"Despite the further drop in the overall Eurozone composite PMI, the index remains comfortably in growth territory. Indeed, on past form it is still consistent with quarterly GDP growth of about 0.3%."
"Consequently, we still expect second-quarter GDP growth in the Eurozone to be higher than the 0.2% QoQ increase seen in Q1."
"However, the pace of recovery is slowing down. The further weakening of the PMI vindicates the ECB’s recent decision to implement further monetary easing and will keep fears of a Japanification of Europe firmly alive."