Prior 48.2Services PMI 52.6 vs 53.0 expectedPrior 53.1Composite PMI 51.5 vs 52.4 expectedPrior 52.4<\/p>\n
This is in contrast to the better than expected French PMIs. In fact, the gains seen in the euro following the French release got erased. Overall, this doesn’t change anything for the ECB though. The central bank will likely maintain its neutral stance and keep monitoring economic developments.<\/p>\n
Comment:<\/p>\n
Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:\n<\/p>\n
\u201cWhat a mess, one might exclaim in view of the further downturn in the manufacturing sector. For the second month in a
\nrow, the headline manufacturing PMI has fallen deeper into sub-50 contraction territory, and for the first time in ten months,
\nproduction is also declining. The latter comes as no surprise, as order intakes had already slumped in November. This trend
\nhas now continued, which does not bode well for the start of next year.\n<\/p>\n
\u201cDespite warning lights flashing in the industry, there are significantly more manufacturing companies looking ahead to the
\ncoming year with confidence in December. The corresponding index has jumped upwards, possibly reflecting the fact that
\nthe government has launched a number of transport projects, decided on reforms to reduce bureaucracy, and wants to
\nexpand defence capabilities. Only if these measures result in an increase in incoming orders will the industry regain
\nmomentum.\n<\/p>\n
\u201cThe service sector is losing momentum for the second month in a row. However, business activity continues to grow visibly,
\nas evidenced by the stronger expansion of staff. New business has been increasing steadily for three months and overall,
\nthe service sector is stabilizing the economy as a whole and is likely to contribute significantly to positive GDP growth in the
\nfourth quarter.\n<\/p>\n
\u201cWhile confidence in the manufacturing sector has increased visibly, the assessment of the next 12 months in the service
\nsector has weakened in December. It is possible that people believe that the economic stimulus package and higher
\ndefence spending will primarily benefit construction companies, the mechanical engineering sector, and companies that
\nproduce directly or as suppliers in the defence sector, while service providers tend to come away empty-handed. <\/p>\n
“However,
\nthis does not have to be the case, because industrial production usually also involves activities that are accompanied by
\nservice providers such as consulting firms, auditors, and software developers. In addition, there are the so-called multiplier
\neffects, because employees of companies that receive additional (government) orders are more likely to treat themselves to
\nan extra visit to a restaurant or a concert that they would otherwise have foregone.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Prior 48.2Services PMI 52.6 vs 53.0 expectedPrior 53.1Composite PMI 51.5 vs 52.4 expectedPrior 52.4 This is in contrast…\n","protected":false},"author":2,"featured_media":86295,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":{"0":"post-348664","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/348664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=348664"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/348664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/86295"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=348664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=348664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=348664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}