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EUR PMI surveys signal further loss of economic growth momentum – BTMU

FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes that euro-zone is likely to lose upward momentum into year end as the PMI surveys revealed declining business confidence for EUR.

Key Quotes

“The euro-zone composite PMI survey declined by 0.7 point to 51.4 in November. The deterioration in business confidence was mainly evident in the service sector and in Germany. After almost stalling during the last two quarters, it appears likely that the German economy will expand only very weakly again in Q4."

"The German composite PMI survey declined sharply by 1.8 point to 52.1 in November reaching its lowest level since July 2013. The loss of growth momentum from a previous euro-zone growth driver is an increasing concern for euro-zone policymakers."

"It will further reinforce the case for further ECB easing which should weigh on the euro. Comments from ECB President Draghi at the European Banking Conference today will be watched closely for any further policy signals.

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