Search ForexCrunch

Bert Colijn, Senior Economist at ING, notes that after dropping to a one-and-half year low in May, the eurozone PMI increased to 54.8 in June from 54.1.

Key Quotes

“While not a fantastic result, the release does provide a silver lining to the current streak of disappointing data from the eurozone.”

“The overall trend remains subdued compared to the fast-paced growth from late 2017.”

“As expected, optimism among businesses has been easing.”

“Even though the soft patch in eurozone data has been dragging on for a while now, pipeline inflation pressures continue to move in the right direction for the ECB.”

“The eurozone is ending the first half of 2018 much less positively than initially expected. While output growth has maintained a steady pace, 1Q was much slower than 4Q 2017 mainly due to one-off factors.”

“It does not look like 2Q has been much better and while a growth pace of 0.4% quarter on quarter is certainly not bad, it could be that weaker confidence among businesses and consumers will bring permanence to the slower growth pace of the first half year.”