Europe’s new purchasing managers index (PMI) figures paint a rosier picture of the beleaguered continent’s economy.
With French manufacturing output reaching a two year high and German Flash PMI beating expectations, business confidence in Europe is on the rise.
From new analysis from Societe Generale:
Credit conditions are another story though, with banks continuing to tighten.
“Although details are not available for each country yet, this survey suggests that financial fragmentation remains a major headwind for the region as a whole, and prevents the monetary conditions set by the ECB to pass through the real economy,” according to the report.
But the rate of tightening is slowing. And this is reason to be optimistic.
“In prior surveys, banks had remained cautious, mainly as they were still concerned about the economy and loan losses,” said JPMorgan’s Greg Fuzesi.
“Economic data suggest that the Euro area economy is finally emerging from recession.”
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