Eurozone: Weak PMI data – TDS
Analysts at TD Securities point out that the flash December PMIs of Eurozone showed declining activity in both France and Germany.
“In France, the effects of the "gilets jaunes" protests was clear in the services PMI, which fell into contractionary territory, falling over 5pts to 49.6 while the Manufacturing index slipped just over a point to 49.7.”
“The decline in the manufacturing sector was pinned on the auto sector. Germany's Flash PMIs for September showed slower activity in both manufacturing and services. The Manufacturing PMI confirmed our slight downside lean, falling a few ticks to 51.5, largely reflecting lower stocks and easing supply chain pressures. New export business fell in part on a drop in sales to China. The auto sector continued to exert a drag as well.”