Today, the final European manufacturing PMI reading came in mixed, but in the case of the largest eurozone economy, Germany, the reading came in stronger than expected. Also, the Eurozone Final PMI for January came in higher, slightly strengthening the euro. Here is the breakdown.
- Switzerland manufacturing PMI (January) came in 47.5 vs 49.1 exp. and 48.4 previously
- Spanish manufacturing PMI (January) dropped to 50.9 vs 53.5 exp. and 53.3 previously
- Italy manufacturing PMI (January) came in 46.3 vs 49.1 exp. and 46.2 previously
- France manufacturing PMI (January) dropped to 45 vs 45.3 exp. and 45.3 previously
- Germany manufacturing PMI (January) came in 45.1 vs 44.1 exp. and 44.1 previously
- Eurozone manufacturing PMI (January) dropped to 46.6 vs 46.1 exp. and 46.1 previously
- United Kingdom manufacturing PMI (January) 48.3 vs 48.2 exp. and 48.2 previously
According to ECB Villeroy ‘Trump's tariffs will increase economic uncertainty, and it is a very worrying development.’ Also, ECB Simkus commented that potential US tariffs will hurt European economies, potentially increasing inflation; he expects that ECB will cut rates once in March and probably 'a couple more', in later months.
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Source: XTB Reserach, Bloomberg Finance L.P.
