Eurozone: Mixed economic releases - TDS

Analysts at TD Securities point out that Eurozone’s flash December inflation came in broadly as expected largely on back of lower energy prices, with core inflation moving sideways at 1.0% y/y, while headline inflation fell slightly more than expected from (a downward-revised) 1.9% y/y in Nov to 1.6% in Dec.

Key Quotes

“Both core goods and services prices moved sideways in the month, with core goods stuck at 0.4% y/y and core services at 1.3% y/y.”

“Final PMIs were released for December, and were revised down in both Germany and France. The French Composite PMI now lies even deeper in contractionary territory, at 48.7. This should be a relatively temporary blip though, led by the "jilets gaunes" protests, which have scaled back since mid-December. November's PMI reading had been 54.0 there. The German Composite PMI was revised down slightly to 51.6.”