Eurozone: Better than expected PMIs data - TDS

Analysts at TD Securities note that the Eurozone’s June flash PMIs were generally better than expected, with the Eurozone flash PMI hitting a 7-month high.

Key Quotes

“Underlying that, we saw sizeable upside surprises for both the French manufacturing and services PMIs, but less upside in Germany, although the manufacturing index there did finally break out to 45.4 after 3 months of a 44-handle.”

“The report noted a solid uptick in export sales for French firms, but less optimism in Germany, where there were "tentative signs that the worst has passed," but most of the key sub-components are still sitting below 50, and the expectations measure is sitting at a 56-month low. There still seems to be a long way to go until we get to the point where we can say that German manufacturing is clearly recovering.”