Today’s flash PMI reports out of Europe reflect an economy that continues to grow. However, the numbers fell short of expectations.
Eurozone composite output PMI slipped to a 2-month low of 52.7. Economists were expecting a reading of 53.1.
The manufacturing sub-index fell to a 2-month low of 53.0 (54.0 estimated) and the services sub-index climbed to just 51.7 (51.9 estimated).
Any reading above 50 signals expansion. But it’s clear that the bar may have been set too high by the markets.
“A dip in the eurozone PMI provides a reminder that the region‟s recovery continues to be uneven and fragile,” said Markit’s Chris Williamson. “The slight easing in growth is disappointing, but it‟s too early to read too much into one month‟s data, especially as the rate of growth of new orders picked up to its highest since mid-2011. Looking at the latest two months as a whole, the PMI suggests the region is on course to see GDP expand by up to 0.5% in the first quarter, which would be the strongest growth for three years.”