Euro area: All eyes on flash PMIs - Nomura

Research Team at Nomura, expects the euro area composite PMI to decline 0.3 points to 52.9 in August following a slight uptick to 53.2 in July.

Key Quotes

“At the sector level, we expect manufacturing sector activity to slow further to 51.5 in August from 52.0 in July because of a decline in the new orders to inventories ratio in July. Similarly, we expect the services sector PMI to edge down 0.3 points to 52.6 following a marginal increase of 0.1 points in the previous month. An outcome in line with our expectations would bring the average level of the July and August composite PMI to a level historically consistent with 0.3% q-o-q Q3 GDP growth, indicating an unchanged pace of output growth from Q2.”