Eurozone Manufacturing PMI at 6-Year High: Is It a Turning Point?
Eurozone Manufacturing PMI in April
According to a report by Markit Economics, the Eurozone Manufacturing PMI (Purchasing Managers’ Index) stood at 56.7 in April 2017 compared to 56.2 in March. The figure was slightly below the preliminary estimate of 56.8.
The Eurozone Manufacturing PMI surprised the market with an expansion in April. It’s the strongest performance since April 2011.
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The index showed stronger improvement in business activity in April. New orders, export orders, and job growth rose at a stronger rate. A higher-than-forecast Eurozone (HEDJ) (VGK) Manufacturing PMI was driven by domestic and international demand and, in turn, improved the confidence level of the business sector. It’s been improving gradually since July 2016. Most Eurozone countries had stronger manufacturing PMIs in April 2017, which is improving confidence in the overall economy (IEV).
Impact on the economy
Many fund managers believe that the economic condition of the Eurozone is improving gradually. BlackRock (BLK) CEO (chief executive officer) Larry Fink recently said in an interview with CNBC that he sees better value in Europe than the United States.
Emmanuel Macron’s presidential victory in France (EWQ) on May 7, 2017, will most likely boost confidence in the Eurozone’s economy. His proposed reforms are expected to drive investor sentiment.
In the next part of this series, we’ll take a look at France and what the election could do for the economy and the manufacturing PMI.