Euro area: The sky is the limit
The latest flash purchasing managers index surveys showed robust momentum for the euro area. We maintain our GDP growth forecast of 2.3% for 2017.
Flash purchasing managers’ indices (PMIs) for the euro area ended the year on a strong note. The composite PMI increased to 58.0 in December, from 57.5 in November, above consensus expectations (57.2).
The robust momentum was led by a booming manufacturing sector, while services sentiment also improved.
The breakdown by sub-indices was pretty strong, with new orders and output rising strongly across both sectors.
Overall, today’s PMIs point to further acceleration in euro area growth at the end of the year. We maintain our GDP growth forecast unchanged at 2.3% in 2017 and 2.3% in 2018.