THEEurozone composite PMI it is still in red. This time she worries too Germany and the disappointment with the German data puts pressure on the euro. From the France positive surprises come instead.
According to the flash estimate of the Markit survey of purchasing managers in the manufacturing and services sector, in April the data relating to thecurrency area it stands at 46,5 points, in line with March. The survey therefore remains below the threshold of 50 points, which marks the boundary between expansion and contraction. The employment sub-index is at 47,3, up from 47,7 in March.
The services sector figure rose on a monthly basis from 46,4 to 46,6 points, while the business expectations sub-index saw a reading of 55,7, down from 56,2 in March. As for the manufacturing sector, the latest survey showed a drop from 46,8 to 46,5 points, the worst reading of 2013. Analysts had forecast a zero change. The sub-index relating to production fell to 46,3 from 46,7 in March, while that of new orders fell to 44,9, the lowest since December, from 45,3 in March.
Restricting the gaze to individual countries, the most surprising (but negative) figure is that of Germany. This month, German economic activity contracted for the first time in five months: the composite PMI fell between March and April from 50,6 to 48,8 points, falling below the fateful threshold for the first time since November of the 50 points.
The German manufacturing sector retreated to 47,9, the weakest reading since December. Expectations were for a survey similar to that of March (49 points). The sub-index relating to production weighs the down, after three months of expansion. The services sector also contracted, from 50,9 to 49,2 points, well below estimates (51 points). In the wake of the German figure it suffers the euro, which weakens both against the yen (128,017) and against the dollar (1,2975). Mid-morning the MY BAG of Frankfurt is the only one to travel in red.
as to France, economic activity surprises positively, recording a less than expected slowdown. Against a composite PMI rising to 44,2 in April, the highest in four months, the services sector, which covers more than half of French economic activity, rose from 41,3 points in March to 44,1 points. Also in this case it is the highest figure for four months, well above expectations (42). The manufacturing sector instead rose from 44 to 44,4 points, just above the estimates (44,3).
