Eurozone: PMIs to remain somewhat unchanged in June – Danske Bank

In the euro area, PMI figures are due out and analysts at Danske Bank expect PMIs to remain somewhat unchanged in June, as activity in the euro area is still strong, although risks seem tilted to the downside.  

Key Quotes

“Manufacturing PMI rose from 56.7 in April to 57.0 in May while the service PMI declined from 56.4 in April to 56.3 in May, leaving composite PMI unchanged. Seemingly, the weak manufacturing PMIs observed in recent months in the US and China did not drag euro area PMIs down in May, but could still weigh on the June figures.”

“New orders are currently at a six-year high and the order-inventory balance, which is usually a good leading indicator, has started to diverge and could drag manufacturing PMI down in June. Additionally, the weakness in the external environment already mentioned could drag on export orders.”