Italian Manufacturing PMI rose to 53.8 in April, up from 53.3 in March, and above forecasts on rise 53.4, what signalled a third straight monthly improvement in operating conditions facing Italy’s goods producers. Furthermore, the latest reading was the second highest seen over the past four years, behind only last April’s 54.0.

On Tuesday Spanish Unemployment Change data was released. The number of unemployed in Spain has dropped in April by 118 923 people, thus beating forecasts on decline by 64,800. This is the largest decrease in unemployment in this month throughout the time series. In the past seven years, unemployment had declined on average in April by 25,000 people. In seasonally adjusted terms, unemployment decreased by 50,160 people, the best figure recorded in April. With the exception of July 2014, the number of unemployed in seasonally adjusted terms has been declining every month since May 2013, accumulating 24 months of decline.

From Eurozone, on Wednesday, Spanish and Italian Services PMI data and Eurozone Retail Sales figures were released. Spanish Services PMI rose for the second month running to 60.3 in April from 57.3 in March. Analysts were predicting no change. The reading signalled a substantial monthly increase in activity, and the sharpest since November 2006. Service sector output has now risen on a monthly basis throughout the past year-and-a-half. The Financial Intermediation sector posted the fastest increase in activity, followed by Transport & Storage. 

Italian Services PMI registered 53.1 in April, up from 51.6 in March. Smaller increase to 52.1 was expected. This was the index’s second-highest reading in over four years, bettered only by that in June 2014. Reflective of demand in the domestic economy having strengthened, services firms recorded a rise in incoming new business for the second month running in April. Furthermore, as was the case with business activity, the rate of growth in new work accelerated to a ten-month high and was robust. 

In March 2015 compared with February 2015, the seasonally adjusted volume of retail trade fell by 0.8% in the euro area, missing forecasts on 0.4% decline. The 0.8% decrease in the volume of retail trade in the euro area in March 2015, compared with February 2015, is due to falls of 2.7% for automotive fuel, of 0.8% for the non-food sector and of 0.6% for “Food, drinks and tobacco”.

This week markets will be looking at:

French Prelim GDP (Wednesday 7:30)

German Prelim GDP (Wednesday 8:00)

Italian Prelim GDP (Wednesday 10:00)

Flash GDP (Wednesday 11:00)