In March, the Eurozone and UK PMIs showed slight improvements, with composite indexes of 50.4 and 52.0 respectively. While the Eurozone's score marks a seven-month high, driven by rising manufacturing activity, it remains a concerning figure affected by tariff distortions. Consequently, the PMI report provides little comfort for the European Central Bank (ECB) regarding monetary policy changes. Similarly, the UK's PMI shows an improvement that bodes well for the Chancellor but hides a troubling slump in manufacturing and employment pressures, revealing ongoing economic vulnerability.
The eurozone's 50.4 composite print is a seven-month high, driven by a 26-month high in manufacturing activity, but the figures are distorted by tariff front-running.
The PMI report means next to nothing for the ECB; it is not scary enough to prompt an April cut, nor strong enough to cause inflation concerns.
Markets need to see whether the German fiscal package will significantly impact growth and help close the growth gap with the US economy.
In the UK, the improvement to 52.0 is positive for the Chancellor, but the slump in manufacturing and cuts in employment indicate underlying economic weakness.
Collection
[
|
...
]