Eurozone’s Services PMI Fell in February

According to a report by Markit Economics, the Eurozone’s final services PMI (purchasing managers’ index) had a weaker rise in February 2018. The PMI was 56.2 in February—compared to 58 in January. The PMI didn’t meet the preliminary market estimation of 56.7.

Various countries in the Eurozone like France, Germany, and Italy posted a weaker improvement in manufacturing and services activity in February. The weaker rise in the Eurozone’s services PMI in February was mainly due to the following:

• The production volume and output rose at a softer rate in February.
• New business orders and export orders rose at a weaker rate in February.
• The employment in the service sector rose at a faster rate in February.

The Eurozone’s major economic indicators showed a weaker improvement in February. Weaker consumer demand impacted the economic activity in February. Global sell-off pressure continued in February, which impacted investors’ sentiment.

Major ETFs like the Vanguard FTSE Europe ETF (VGK) and the iShares MSCI Eurozone ETF (EZU), which tracks the Eurozone’s performance, fell 6.1% and 6%, respectively, in February.

Next, we’ll look at the United Kingdom’s (EWU) services PMI in February.