January 24, 2019

January flash PMIs’ fall a further blow to the ECB’s benign base case

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

Following a surprising rise of the ZEW earlier this week, today’s release of the January Flash PMIs defied expectations that sentiment would stabilize on a broader basis. The January composite PMI reading is the lowest since July 2013 and 0.3 standard deviations below average.
January flash PMIs’ fall a further blow to the ECB’s benign base case
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • With a reading of 50.7, the euro area composite flash PMI for January fell to the lowest level since July 2013 amid employment creation losing steam.
  • The deterioration in sentiment was mainly driven by faltering service sector sentiment in France suggesting ongoing headwinds from the yellow vests.
  • Today’s PMI data would suggest a meagre Q1 GDP growth rate of just 0.1% qoq, highlighting downside risks to euro area activity and the domestic recovery.
  • The January PMIs are a further challenge to the ECB’s benign macro scenario.

Download the full publication below

JANUARY FLASH PMIS’ FALL A FURTHER BLOW TO THE ECB’S BENIGN BASE CASE

Also interesting

Blue-sky-white-clouds-temperature-hot-thermometer
00:06:05
April 7, 2021
Podcast

The Spotlight ǀ Generali Investments Podcast: Some like it hot

abstract-highway-bridge-background-picture-id1131330933 (1)
April 2, 2021
Real Assets

Generali Real Estate ǀ Interview with Aldo Mazzocco, CEO

size 3
April 1, 2021
Market Commentary

COVID-19 UPDATE Facts & Figures