The PMI data from the euro area today shows a significant contrast.
The PMI data from the euro area today shows a significant contrast. While the industry sector held up in April, albeit with a caveat, the services sector struggled due to softer demand conditions amid the fallout from the Middle East conflict.
Higher energy prices is starting to bite at both the French and German economies and that is not a good early sign. The caveat for the manufacturing sector performance owes to a surge in new orders on the month. And that is heavily linked to customers seeking to secure purchases amid concerns over price rises and supply shortages.
In essence, it is a case of demand frontloading as supply chains are set to become tighter in the near future. And the situation is not helped amid the continued disruption in the Strait of Hormuz. Looking over to the inflation side of things, we’re starting to see price pressures ramp up across the region.