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The February PMIs beat expectations, but show early signs of spill-overs from the Wuhan virus outbreak to activity in the Euro area, analysts at Nordea reports. EUR/USD has jumped to 1.0815 with the news.

Key quotes

“The composite index rose to 51.6 from 51.3 last month, signaling steady expansion in business activity and beating expectations. Both the manufacturing and services components increased.”

“Manufacturing remained in decline, at 49.1, but climbed to a one-year high. This is partly due to undeservedly positive effects from an increase in suppliers’ delivery times, which normally means there is high demand and thus good news, but this time actually reflects the shock to supply from the Wuhan virus outbreak.

“A slower fall in new orders was a positive sign however, strengthening the case of a bottoming out in the industry.”

“Looking ahead, today’s numbers might ease some minds concerning the virus, they do appear to show early signs of disruptions which may weigh on especially the manufacturing sector in the coming months.”