- Before 51.6
- Manufacturing PMI 46.1 vs 45.3 expected
- Prior to 45.1
- PMI 50.2 vs expected 49.7
- Before 49.6
Some last hope for the eurozone economy? The surprise in acceleration in the manufacturing sector, especially in Germany, is something to note. However, there is still much to be desired in calling this the true place of recovery. But with the services sector still, there is certainly room for hope to start the New Year. Looking at the details, employment conditions firmed in January but rapid price pressures were seen. The latter is not something the eCB expects. HCOB notes:
“The kick-off to the new year is very encouraging. The private sector is back in cautious growth mode after two months of decline. The drag from the manufacturing sectors has eased a bit, while the services continued normally. Germany played a large role in developing the Euro economy, with the evaluation index jumping back into an extended range. In contrast, the French economy was still in short.
“In a surprising twist, employment in the service sector increased more strongly than in December, when it did not grow. It is reassuring to see new business coming in, which were reduced or in general over the past four months, for growth. However, the situation is still fragile moving shank again, and the same goes for a new export business, in which you including tourism.
“The manufacturing sector is still in decline, but the pace of decline has slowed slightly. The sector continues to seek employment at a rapid pace, and new orders are also falling. On the flip side, companies are much more optimistic about the future, recording higher returns every year from now on. This could be an unexpected trump effect or because the coin bottomed out after nearly two declines. a year
“Ahead of the ecb meeting next week, news on the price front is not encouraging. Cost inflation has increased in the services sector, and ecb President Christine Lannarde has been keeping a close eye. to sell prices in the sector has increased at a similar level to the previous month. It is concerned, entering prices in manufacturing, completing four months of stable costs or reduction that the This higher price pressure is due to the Helker Euro and the weaker CO2 tax in Germany. In the services sector, it seems to increase wages, which rose in the Eurozone into the third quarter of 2024, according to Eurostat. However, with the weak state of the economy, it seems that the ECB is reluctant to gradually cut interest rates, for the time being.
