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“The latest PMI readings for the eurozone signal a
continuation of the recent strong performance of the
currency bloc’s economy. This stabilisation in the
rate of expansion is pleasing, following signs of
growth easing in recent months.
“The survey data over the first two months of the
quarter are consistent with only a fractional easing
in the rate of growth of GDP from the 0.6% rise in
Q2.
“There was further evidence of growth cooling in
the service sector, where both business activity and
new orders rose at the weakest rates since
January.
“However, this was counterbalanced by further
impressive manufacturing data as goods producers
were able to secure new export orders at the
fastest pace in six-and-a-half years. Stronger order
inflows added to capacity pressures, with
manufacturing backlogs increasing to the greatest
extent since mid-2006. This bodes well for the
labour market as firms will likely look to hire extra
staff to deal with outstanding work.
