Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Eurozone June flash PMIs were weaker than expected, an unsurprising result after the French and German prints released earlier this morning. Like Germany, services (52.6 vs 53.4 cons, 53.2 prior) remains in expansionary territory while manufacturing (45.6 vs 47.9 cons, 47.3 prior) is stuck in contraction.
The report notes that the Eurozone ex-Germany and France continued to grow solidly. Arguably if there was an ex-Germany/France EZ number it would have been broadly in line with consensus. Additionally, the inflation stickiness seen in the German report appears to be an outlier, with the rest of the Eurozone joining France in seeing moderations in output charge inflation.
Key notes from the release:
- “Looking geographically across the euro area, Germany recorded a slight increase in activity in June, while the rest of the eurozone continued to record solid expansion, albeit with the pace of growth easing to a four-month low”.
- “Growth was again limited to the service sector, where activity increased for the fifth month running”.
- “Central to the slower expansion in overall business activity across the euro area in June was a renewed fall in new orders”… “Demand weakness in export markets was particularly prevalent as new export orders decreased much more quickly than total new business”.
- “The rate of input cost inflation eased for the second month running in June and was the slowest in the year-to-date”.
- “In line with the picture for input costs, the pace of output price inflation also eased in June and was at an eight-month low. Selling prices in the service sector continued to rise solidly, albeit to the least extent in just over three years”.
- “Selling prices increased at slower rates in France and the rest of the eurozone, but at a faster pace in Germany”.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.