25 Mar 2015
EMU’s PMI to keep the upside – Danske Bank
FXStreet (Edinburgh) - According to analysts at Danske Bank, the upside trend in EMU’s PMI could extend its momentum in the upcoming periods.
Key Quotes
“Manufacturing PMI increased from 51.0 in February to 51.9 in March and is now at the highest level since May 2014.
“The details behind the improvement were good and suggest further progress in coming months. The increase is due to higher new orders, which rose from 51.0 in February to 52.2 in March mainly driven by domestic demand as new export orders increased less”.
“Stocks of finished goods continued to decline, which means the order inventory balance suggests further improvement in the manufacturing PMI going forward. It currently signals that PMI manufacturing will increase to around 55.0”.
“The higher manufacturing PMI likely reflects stronger domestic demand in the euro area as uncertainty fades, while exporters benefit from the weaker euro”.
“Improved bank lending is also supporting the recovery, in contrast to previous years”.
“Our model for composite PMI, new orders, which is based on real M1 growth and the effective euro, also suggests the PMIs will continue to increase in coming months”.
Key Quotes
“Manufacturing PMI increased from 51.0 in February to 51.9 in March and is now at the highest level since May 2014.
“The details behind the improvement were good and suggest further progress in coming months. The increase is due to higher new orders, which rose from 51.0 in February to 52.2 in March mainly driven by domestic demand as new export orders increased less”.
“Stocks of finished goods continued to decline, which means the order inventory balance suggests further improvement in the manufacturing PMI going forward. It currently signals that PMI manufacturing will increase to around 55.0”.
“The higher manufacturing PMI likely reflects stronger domestic demand in the euro area as uncertainty fades, while exporters benefit from the weaker euro”.
“Improved bank lending is also supporting the recovery, in contrast to previous years”.
“Our model for composite PMI, new orders, which is based on real M1 growth and the effective euro, also suggests the PMIs will continue to increase in coming months”.