020 7898 0500It was an extremely positive day for eurozone economic data yesterday as a raft of PMI readings came in from countries across Europe and the eurozone as a whole. The Markit manufacturing figures for Germany were shown to be at 62.5 against an expectation of 60.2, while composite and services were 57.6 and 54.9 respectively. Both of these readings were also above expectations and the figures suggest that the German economy might be able to ride out the storm caused by the collapse in the coalition talks.
PMI figures from France also came in above expectations, with composite (60.1), manufacturing (57.5) and services (60.2) readings showing significant strength. Meanwhile, the Eurozone’s Markit PMI readings were also strong. The euro subsequently strengthened against the dollar and sterling as the economic recovery continued.
Today we have the IFO business climate index for Germany. It reached an all-time high of 116.7 in October and is forecast to push even higher to 116.9 in November. It will be interesting to see if this proves to be the case, or whether it could go even higher than that.
