Euro area: PMI recovery supports moderate growth – Commerzbank

FXStreet Insights Team FXStreet

Commerzbank’s Dr. Vincent Stamer notes that the Euro area composite PMI rose to 51.9 in February, recovering about half of its recent decline and remaining in a range historically consistent with moderate growth. Sentiment improved particularly in manufacturing, while services edged higher. The bank expects the Euro area economy to grow again this year, though less strongly than Germany.

Composite PMI signals ongoing moderate expansion

"The composite purchasing managers' index for the manufacturing and the services sectors in the euro area rose from 51.3 to 51.9 points in February."

"The composite purchasing managers' index for the euro area rose to 51.9 points in February, up from 51.3 points in January."

"Following declines in the two previous months, the indicator has thus stabilized (Chart 1)."

"It also remains in a range in which the euro area economy has mostly grown moderately in the past."

"The same applies to the economy in the euro area, although growth rates here – unlike in Germany – are unlikely to be higher than last year."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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