January 2019 flash Eurozone Markit manufacturing and services PMI’s 24 January 2019

  • Manufacturing PMI 50.5 vs 51.4 exp. Prior 51.4
  • Services 50.8 vs 51.5 exp. Prior 51.2
  • Composite 50.7 vs 51.4 exp. Prior 51.1
  • Deteriorating exports contributed to the disappointing order book picture. Exports fell for a fourth successive month.

Looking at prices, average output charges meanwhile rose at a slightly increased rate, in part due to rising selling prices in Germany associated with increased road toll charges as well as some signs of upward wage pressures. However, there was better news on input cost inflation, which moderated to the lowest for nearly one-and-a-half years. Softer cost inflation principally reflected lower oil prices and easing capacity constraints in supply chains, allowing firms to negotiate lower prices in many instances.

The overall theme is softer for these numbers but we know the picture is more mixed at the country level. It obviously points to lots of uncertainty and that’s likely to be reflected by the ECB later.

EURUSD had already made it’s feeling felt on the French and German numbers and sits at 1.1358 after this data, with little movement.

The other PMI’s today;

  • Germany manufacturing 49.9 vs 51.3 exp.Prior 51.5.
  • Services 53.1 vs 52.1 exp. Prior 51.8.
  • Composite 52.1 vs 52.1 exp. Prior 51.6.
  • France manufacturing 51.2 vs 49.9 exp. Prior 49.7.
  • Services 47.5 vs 50.5 exp. Prior 49.0.
  • Composite 47.9 vs 51.0 exp. Prior 48.7
  • Japan 50.0 vs 52.6 prior
  • Australia 54.3 vs 53.7 prior
  • Services 51.0 vs 52.2 prior


Ryan Littlestone

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