Eurozone next week: PMI and Ifo - Danske Bank
|In the euro area, preliminary PMIs will offer more information about whether or not the phase of increasing growth is over for now, considered analysts at Danske Bank.
Key Quotes:
“In the euro area, the PMI figures for March are due for release on Thursday. For two consecutive months, we have seen manufacturing PMI decline. After peaking at 60.6 in December 2017, it declined to 58.6 in February. We expect to see a further decline to 57.6 in March. We have seen the leading order-inventory indicator move into negative territory and expect the 2017 euro appreciation to drag on the high manufacturing PMI. Overall, we believe manufacturing PMI will remain at a high level despite its decline. Service PMI increased from 54.9 in October 2017 to 58.0 in January but saw a large fall to 56.2 in February. Given the large fall in the leading ‘New Business’ indicator, we also expect a further decline in Services PMI in March to 55.7.
“We also expect the March print of German Ifo expectations on Thursday. Ifo expectations have been falling since November 2017. In February, the figure decreased to 105.4 and we expect it to be 105.0 in March.”
“Further, we expect Luis de Guindos to be formally appointed as ECB Vice-President during the 22-23 March heads of state meeting. De Guindos is due to start at the ECB on 1 June 2018.”
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