Eurozone PMI Manufacturing rose from 44.4 to 46.6 in January, a 10-month high. However, PMI services fell from 48.8 to 48.4. PMI Composite rose from 47.6 to 47.9, a 6-month high.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted that Eurozone’s manufacturing sector is experiencing a “widespread easing of the downward trajectory witnessed in the past year”. He highlights that this positive trend is “evident across key indicators such as output, employment, and new orders.”
While the services sector is contracting, de la Rubia points out that the contraction is “currently moderate”. He also notes a “silver lining,” as there is an increase in companies expanding their workforce, which indicates a degree of optimism in the market.
De la Rubia’s observation that PMI price indicators are in line with the sentiments of the hawks within ECB. He states they are “all about shouting ‘hold your horses’”, emphasizing a need for a measured approach and advising against rushing into early rate cuts.
Full Eurozone PMI release here.
