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Euroland: Higher Euro PMIs And German ZEW Expectations

Published 12/17/2014, 12:05 AM
Updated 05/14/2017, 06:45 AM

Euro area flash PMIs increased in December and were slightly stronger than consensus expectations. The improvement in PMIs was broadly in line with our expectations and confirms our view that growth in the euro area will slowly strengthen in 2015 after it lost momentum during 2014 (for more on the growth outlook see The Big Picture: Synchronous global recovery in H1 15 , 1 December 2014).

The euro composite PMI new orders increased to 50.9 in December from 49.7 in November. The improvement followed after it had declined each month since June, and we believe it will trend higher in coming months, along with other signs of improvement in business climate indicators.

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