In February, the PMI for the Eurozone industry was at 46.1, down from 46.6 the previous month. The reading turned out to be worse than the forecast (47.0). The indicator still falls below the 50-point mark.
We are once again especially observing the results from Germany, where in recent months we have witnessed gradual improvements in the economic climate in the industry. However, this time the indicator has decreased to 42.3 versus an expected 46.1. The data indicates the persisting weakness in the German economy.
Much better data were recorded in the services sector. The PMI for the Eurozone in this sector increased to 50 points. Such strong growth is a positive surprise, with the consensus being 48.8. Thus, for the first time since July 2023, the index has shown a five in the lead.
The Aggregate PMI was at 48.9, up from 47.9 the previous month. The increase is credited to the services sector. If the improvement in the services sector persists, this might help in avoiding a recession in the following quarters. In February, France stood out positively where the aggregate index was at 47.7 points versus forecasts of 45 points. The last time an index value was higher was in May 2023.
Bartosz Wałecki, Analyst at Michael / Ström Dom Maklerski
