From Eurozone, yesterday, Spanish and Italian Manufacturing PMI data was released. Latest PMI data signalled a strong start to the year for Spanish manufacturing firms as new business rose at the fastest pace since February 2007, supporting sharper production growth. Higher workloads led to a pick-up in the rate of job creation, while positive expectations regarding future new orders encouraged firms to increase inventories. Meanwhile, falling raw material prices resulted in the sharpest decline in input costs since July 2009. The seasonally adjusted Markit Spain Purchasing Managers’ Index increased to 55.4 in January from 53.0 at the end of 2015, thereby signalling a stronger improvement in business conditions than in December. In fact, the health of the sector strengthened to the greatest extent since May last year.
The rate of growth of Italy’s manufacturing economy eased at the start of 2016, with output and new orders both rising more slowly compared with December. Nevertheless, businesses upheld a solid pace of job creation, meaning that employment in the sector has now risen for 13 months in a row. Elsewhere, January’s survey showed a sharp and accelerated drop in average input prices, which in turn contributed to a renewed decline in factory gate charges.
At 53.2 in January, down from December’s 57month high of 55.6, the headline Markit/ADACI Italy Manufacturing Purchasing Managers’ Index pointed to the slowest improvement in the health of the goods-producing sector since September.
ISM In the US session, also, Manufacturing PMI figures were released. The January PMI registered 48.2 percent, an increase of 0.2 percentage point from the seasonally adjusted December reading of 48 percent. Analysts were forecasting increase to 48.6. Comments from the panel indicate a mix ranging from strong to soft orders, as eight of our 18 industries report an increase in orders, and seven industries report a decrease in orders.
Tomorrow's session will bring German Unemployment Change and Unemployment Change figures. German Unemployment Change is forecasted to decline by 7,000, while Unemployment Rate should remain unchanged at 10.5%. There will be no data releases in the US session.
Figures to watch:
German Unemployment Change (Tuesday 9:55)
Unemployment Rate (Tuesday 11:00)
