The only releases of note from the eurozone yesterday were the manufacturing PMI readings from Germany and the eurozone. Both were revised upwards to 51.8 in November 2018 from preliminary readings of 51.6 and 51.5 respectively. Still, both figures will still be some cause for consternation, with Germany’s pointing to the slowest growth in the manufacturing sector for 31 months.
The eurozone’s reading showed the weakest growth in the manufacturing sector since August 2016. In addition, Germany’s figures marked the tenth time PMI has fallen in 2018 alone. New orders fell by the most in four years and new export orders shrank by the most since June 2013. All in all, it was not a great day for the manufacturing sector and it will be helped that talks of a trade war breakthrough between the US and China will benefit Europe sooner rather than later.
Still, the euro had a decent day against sterling and the dollar, although it has quite a bit of ground to make up against the greenback before rooftops can be shouted from. Nothing of note on the economic data schedule today really, but tomorrow we have composite and services PMI from Germany and the eurozone, as well October’s retail sales figures from the euro area.