By: Tradehits.com
Things to pay attention to in the following week:
Manufacturing PMIs: The Eurozone Manufacturing sector improved considerable from November, confirming the euro-area is on the right track to recovery. The headline reading reached 52.7 in line with market forecast compared to 51.6 achieved in November. This was the highest reading in 2.5 years. Italian manufacturing edged up 1.5 points to 53.3, beating expectations for a 51.3 reading, raising optimism about positive growth in 2014. Spanish manufacturing rebounded in December posting 50.8 compared to 48.6 in November indicating expansion. Manufacturing activity is expected to improve further with Spain reaching 51.3, Italy climbing to 54.2 and the Eurozone is expected to reach 53.9
Services PMIs: The Eurozone services advanced at their slowest pace in four months. Ongoing domestic sluggishness in some member-states continued to weigh on recovery toward the end of 2013. Eurozone services declined from 51.2 to 51.0 in December still signaling expansion. Spain registered the biggest leap in six years, reaching 54.2 compared to 51.5 in the previous month, but Italy continued to contract posting 57.9 in December following 57.2 in November. Nevertheless the PMI’s suggest that Eurozone recovery has gathered momentum at the end of 2014. Services sectors in Spain and Italy are expected to improve further with Spain reaching 55.3 and Italy advancing to 48.2 though still in contraction and the Eurozone is expected to reach 51.9.
Retail PMI: The Eurozone retail PMI continued to slide for the fourth month running, falling to 47.7 from 48 in November, showing strong contraction in France and slower growth decline in Germany. Eurozone retail PMI data are based on the three largest Eurozone economies; Germany rising for the eighth month running in December, France downturn increased, as sales fell for the fourth successive month and Italy continued to post the sharpest decline in sales of the three economies. Nevertheless, these declines were lower than in previous months.
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