In spite of some cooling in forward indicators, euro area growth should remain robust this year.Flash PMI indices eased in February, but remain consistent with continuing solid growth in the euro area.The flash composite purchasing managers’ index (PMI) for the euro area fell to 57.5 in February from 58.8 in January, below consensus expectations. Activity in both services and manufacturing cooled in February.While the average composite PMI is pointing to an acceleration in growth in Q1, the fall in some forward-looking components is consistent with our forecast of a gradual slowdown in the pace of growth in the second half of 2018. Still, February PMIs confirm that growth is improving in terms of quantity as well as quality, with rising job creation and investment. We forecast euro area
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In spite of some cooling in forward indicators, euro area growth should remain robust this year.
Flash PMI indices eased in February, but remain consistent with continuing solid growth in the euro area.
The flash composite purchasing managers’ index (PMI) for the euro area fell to 57.5 in February from 58.8 in January, below consensus expectations. Activity in both services and manufacturing cooled in February.
While the average composite PMI is pointing to an acceleration in growth in Q1, the fall in some forward-looking components is consistent with our forecast of a gradual slowdown in the pace of growth in the second half of 2018. Still, February PMIs confirm that growth is improving in terms of quantity as well as quality, with rising job creation and investment. We forecast euro area GDP growth of 2.3% in 2018.