FXStreet (Delhi) – Teunis Brosens, Research Analyst at ING, suggests that a slowdown in emerging markets will hit Eurozone exports sooner or later. But for now, new orders are at a five month high, boding well for Eurozone business activities in the months ahead. Draghi may not need to make good on his promise to expand or extend QE when necessary just yet.
Key Quotes
“Flash September Eurozone PMIs fell slightly compared to last month, but continue to paint a positive picture of Eurozone business activity. According to flash estimates, the composite PMI slipped to 53.9 from 54.3 in August, driven by minor declines in both the manufacturing and services sectors.”
“Eurozone businesses reported continuing expansion of activity in September. Employment continues to grow, albeit at a slowing pace. Average PMIs in the third quarter are slightly higher than in the second, suggesting that the 0.4% quarterly growth rate achieved in the second quarter can be maintained in the third.”
“German businesses continue to do well. Although German PMIs slipped slightly from August, the third quarter was better overall then the second. German businesses reported higher demand on both domestic and foreign markets. Moreover, job creation in Germany accelerated to the highest pace since December 2011.”
“In a sense, today’s flash PMI is already outdated as it is published: most of the flash PMI data were collected last week and therefore do not capture the effects of the VW diesel manipulations. In any case, it is way too early to assess the impact on the wider economy.”
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