- German manufacturing PMI stays below 45 for the second month
- Manufacturing sector in France contracts too
- Better situation in services could save EMU growth – for now
After strong Chinese data for March there was a broad expectation that German (and European) industry recovers as well. That did not happen. German manufacturing PMI inched up but just by 0.4pts to 44.5 pts. and that’s a recessionary level again. French manufacturing does better but remains below 50 pts. as well (49.6 vs 49.7 in March). A solid situation in services, especially in Germany where the index inched up from 55.4 to 55.6 pts. remains a consolation prize and means that GDP growth will not collapse for now. However, services sector is lagging in economic cycle and will not hold up unless the industry recovers. There’s small negative reaction on DE30 but the index remains in a short term upwards trend. Will it be at risk given such a dreadful situation in German industry?
Source: xStation5
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