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- Eurozone PMI shows underlying strength and a booming manufacturing sector - ING
Eurozone PMI shows underlying strength and a booming manufacturing sector - ING
Bert Colijn, a Senior Economist at ING, suggests that the eurozone economy looks like it's on the brink of a startling recovery.
"Only months ago it seemed to be rapidly turning into the weak link among advanced markets, being slow out the gates with vaccinations, seeing lockdowns extended and having weaker fiscal support. True, first-quarter GDP growth figures are set to still show declines, but the April PMI adds to a lot of encouraging underlying numbers."
"The composite PMI jumped from 53.2 to 53.7, indicating that month-on-month improvements in output are happening. While lockdowns still weigh massively on service sector performance, small easings of restrictions did cause the service sector PMI to increase from 49.6 to 50.3 this month, the first reading indicating improving output since August."
"While industrial production has shown some weakness in recent months due to input shortages, the PMI confirms that the only thing holding back manufacturing for the moment is the ability to produce."
"Consumer confidence already showed a surprising improvement this month, which indicates that domestic demand is set to rebound once the economy reopens. Thanks to the large inflow of vaccinations this quarter, that prospect is closer than some may think. This is reflected in service sector optimism seen in the PMI today, which includes some of the hardest-hit sectors from lockdowns."
"All in all, the picture is improving for the eurozone economy."
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