Manufacturing woes feed into services
This is what the latest slew of service PMI's tell us - The drag on manufacturing has now moved over into the service sector:
- France: 51.1 vs 51.6 exp (5-month low)
- Germany: 51.4 vs 52.5 exp (weakest business activity in three years)
- Eurozone: 51.6 vs 52.0 exp (Markit not private sector close to stagnation)
- Spain: 53.3 vs 53.9 (optimism on future hit 76 month low)
- Italy: 51.4 vs 50.5 (new business picked up, but 3rd monthly drop in a row in export sales)
So, all eyes onto the ECB for more action and the anticipation for fiscal policy increases. Sensing a new dawn of fiscal policy to take up the mantle of where monetary policy has failed.
