Fecha Actual:May 15, 2021

European Economic Overview, PMI data.

This week closes with the PMI data for the European countries France and Germany. The indicator will report on the state of the European economies for the last month. This is contextualized after the meeting and the press conference of the European Central Bank and the review of its monetary policy.

Christine Lagarde of the ECB, informed in a conference that it is premature to make changes to the current monetary policy and that the stance will continue to be flexible. So they decided to keep the interest rate unchanged and increase the purchase of bonds.

The new speculations are now in the next meeting in June, where they will evaluate again what measure to take on the current monetary policy. At that time, changes are expected or that they begin to evaluate a reduction in the stimulus program and that the impacts of the easing of restrictions on nations and advances in vaccination will be seen.

The decision to maintain favorable financing conditions is contextualized by the effects of the restrictions imposed in the first quarter by the new waves of contagion, seeking economic stability and appeasing uncertainty. For this reason, they have considered maintaining monetary policy and macroeconomic stimuli.

In this context, the PMI data for services and manufacturing will be published, which in the previous measurement gave surprisingly better results than expected.

The French manufacturing PMI is expected to rise to 59.3 points and 48.2 points for the services PMI. For the German case, the manufacturing PMI is expected to rise six points, towards 66, while that of services, the rise will be less and reach 51.5 points. In the case of the manufacturing PMI of the Euro Zone, it is expected to maintain stability around 62 points, while that of services, to rise slightly towards 49.6.

The growth of service medicine is mostly low in relation to manufacturing production, since it is the sector largely affected by the current crisis. However, with the lockdowns easing in the coming weeks, it is possible that it will start to recover and manage to exceed the ideal result of 50.0 points.


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