Eurozone PMI drops sharply in December – ING

According to Bert Colijn, senior economist at ING, the decline in Eurozone PMI from 52.7 to 51.3 suggests the revival of GDP growth may not have happened at all.

Key Quotes

“Today, the PMI sends a message that is more along the lines of “continuing confidence with alarm bells ringing”.”

“GDP growth in the third quarter slowed to 0.2% with expectations of a bounce back straight after. Even though the PMI is still signalling output growth, the question is whether growth has even picked up at all despite one-offs affecting the third quarter reading.”

“New orders barely grew in December and export orders showed the sharpest contraction seen since the start of the indicator. The global economic environment is hindering Eurozone output, but internal factors like the French protests also played a role in the weak December reading.”

“Today’s PMI confirms an already slow growth environment and with plenty of downside risks possibly materialising before summer next year, doubts about the forward guidance are likely to increase.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.