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Bert Colijn, Senior Economist at ING, notes that the Eurozone PMI has now seen readings between 54 and 55 for the past five months as the economy seems to be adjusting to a lower cruising speed with the service sector being the main engine for growth on the back of strong a labour market.

Key Quotes

“We expect growth to come in at 0.4% quarter-on-quarter for the coming quarters, but downside risks to our outlook are mounting.”

“Those downside risks are mainly felt in the manufacturing sector. Eurozone industry continues to struggle with the global trade uncertainties coming from an imminent Brexit and the escalating global trade conflict.”

“While the US-EU dispute has been contained, uncertainty stemming from the global unrest continues to weigh on European manufacturers.”