5 Nov 2015
Eurozone: Solid October survey data point to resilient growth – Deutsche Bank
FXStreet (Delhi) – Research Team at Deutsche Bank, suggest that in Europe, the solid October survey data point to resilient Euro area growth and that the PMI’s are in line with +0.4% qoq Euro area growth.
Key Quotes
“The final Euro area services reading was revised down a modest 0.1pts to 54.1, which saw the composite PMI at 53.9 (flash 54.0, September 53.6) remaining resilient. Germany saw a slight negative surprise in its final composite reading (-0.3pts to 54.2) although was still up relative to September. Moderate gains were seen for France (+0.3pts to 52.6), Italy (+0.5pts to 53.9) and Spain (+0.4pts to 55.0).”
“If we see no change for the rest of 2015, then this represents a slight upside to their +0.3% qoq Q4 call, which is down to their more cautious view on Germany.”
“ECB Governing Council member Smets said that ‘even if this low inflation is related mainly to falling oil prices, there is a danger that it will have a negative impact on inflation expectations and they could lose their anchoring’. Echoing Draghi’s comments, Smets went on to say that ‘as central bankers, it is our job to be concerned’ and that ‘we will re-evaluate the situation at our next council meeting’.”
Key Quotes
“The final Euro area services reading was revised down a modest 0.1pts to 54.1, which saw the composite PMI at 53.9 (flash 54.0, September 53.6) remaining resilient. Germany saw a slight negative surprise in its final composite reading (-0.3pts to 54.2) although was still up relative to September. Moderate gains were seen for France (+0.3pts to 52.6), Italy (+0.5pts to 53.9) and Spain (+0.4pts to 55.0).”
“If we see no change for the rest of 2015, then this represents a slight upside to their +0.3% qoq Q4 call, which is down to their more cautious view on Germany.”
“ECB Governing Council member Smets said that ‘even if this low inflation is related mainly to falling oil prices, there is a danger that it will have a negative impact on inflation expectations and they could lose their anchoring’. Echoing Draghi’s comments, Smets went on to say that ‘as central bankers, it is our job to be concerned’ and that ‘we will re-evaluate the situation at our next council meeting’.”