Euroarea Slowdown Increasingly Spreading to Germany

Euroarea Slowdown Increasingly Spreading to Germany


Quotes from Societe Generale Cross Asset Research:
-At the margin, the final release of the euro area PMIs were a fraction better than the earlier flash estimates. The overall euro area headline index was revised up 0.4 points and now shows a healthy 0.5 point increase from May.
-Moreover the activity indices actually rose in France, Spain and Italy largely off the back of increases in new business. This might point to some relief after the uncertainty of the Greek election was lifted. But falling oil prices also appear to be playing a role with the euro areainput price index falling to its lowest level in two years.
-The most substantial negative in the report is still the sharp drop in German service sector activity, where the headline index was revised down below the critical 50 level that points to expansion.
-This continues to be suggestive of the slowdown increasingly spreading to Germany. The overall euro area composite index was revised up to 46.4 but is still at a level consistent with euro area GDP declining by 0.3% q/q in Q2 in line with our forecast.
More FOREX-news on pages InstaForex.Com