When the preliminary reading of the German manufacturing PMI was released, it showed that the sector was on course for the first contraction since November 2014. While figures released on Friday confirmed this, it was actually worse than first thought, with it dropping to 49.7. Ongoing trade tensions haven’t helped matters, but a slowing automotive sector is undermining demand too.
Manufacturing PMI in the eurozone was slightly better and dropped to 50.5 in January from 51.4 the previous month, in line with expectations. The eurozone’s inflation rate came in as expected to 1.4% from 1.6% the previous month. It is the lowest rate of inflation since last April.
Nothing of note on today’s schedule, but tomorrow we will see composite and services PMI from Germany and the eurozone. It will be hoped the eurozone’s largest economy can start showing evidence that its economy is no longer faltering. We will also see the eurozone’s retail sales figures from December.