Eurozone manufacturing PMI
According to a report by Markit Economics, the final Eurozone manufacturing PMI (purchasing managers’ index) stood at 55.5 in February 2017 compared to 55.2 in January. The figure beat the market expectations of 55. The February figure showed the strongest performance since April 2011. Eurozone manufacturing PMI surprised the market with a huge expansion in February 2017.
The Eurozone manufacturing PMI showed an improvement in business activity in February 2017. New orders, export orders, and job growth rose at a faster pace this month as compared to January. The higher-than-expected Eurozone (HEDJ) (VGK) (IEV) (FEZ) manufacturing PMI is an important growth driver for the economy. It indicates that the business climate is changing and there is a huge uptrend in the domestic demand.
Fund managers’ perspectives
Marc Lasry, chief executive officer of Avenue Capital Group, said in an interview last month with CNBC that European fundamentals and economic growth still need to improve. While manufacturing and service PMIs in Europe are showing a gradual recovery, Lasry said if you’re thinking about investing in Europe, you should be selective about your investments.
The Eurozone PMI number is in part due to improvement in the manufacturing sectors of Germany (EWG) and Italy. Most of the countries in the Eurozone provided stronger manufacturing PMI in February 2017, which is improving confidence in the overall economy.
In the next part of this series, we’ll analyze the performance of Japan’s flash manufacturing PMI in February 2017.