EURGBP, H4
Eurozone Composite PMI revised lower. However, it is still at a 10-month high. The S&P Global Composite Output Index was revised down to 53.7 From 54.1This was significantly better than the 52.0 In February, the services index reached a 10-month peak. The services index was revised to 55.0 From 55.6The, which was also at a 10-month peak, is also at a high. The Manufacturing PMI remains stuck in contraction territory, but the manufacturing output index has improved and this morning’s surprisingly strong German Number of factory orders (+4.8% vs. 0.2% Expected and 0.5% last month) These are all signs that the sector has begun to recover. Spain And Italy The services sector is recovering well, with the help of the last elimination of virus restrictions. Companies are continuing to demand more, and this is allowing them to pass on the sharply rising cost pressures. But for central bankers, it increases the risk that the second round of effects will continue to push up domestic prices. The outlook for companies remains positive. These data will strengthen the argument for rate increases. The following are the ECBEven though headline inflation is cooling due to lower energy prices, and base effects, it remains high.
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