020 7898 0500The main release yesterday was the German Markit manufacturing PMI flash reading for February. It had been expected to come in at 60.6, but it was actually 60.3. This is the slowest rate of expansion for six months, although still shows healthy growth. In addition, we saw the German services and composite flash readings which were also below forecast. Services and composite had been expected to come in at 56.9 and 58.5 respectively, but when released, they showed 55.3 and 57.4. While these readings are still hugely positive, Germany is the eurozone’s largest economy so it is mildly disconcerting.
Speaking of the eurozone, their PMI data releases were also released and also came in below what had been expected. Composite was forecast at 58.5, but came in at 57.5; manufacturing was forecast at 59.6, but came in at 58.5; and services was forecast at 57.7, but came in at 56.7.
Today we have the German Ifo business climate index reading for February. Last month it rose to 117.6 but is expected to fall back to 117.0. We will also see the European Central Bank’s monetary policy meeting accounts.
