Eurozone PMI: Loss of momentum is widespread - BBH

Research Team at BBH, suggests that the Eurozone PMI was unchanged from the preliminary reading of 51.5, which is off 0.2 points from April's 51.7 reading. 

Key Quotes

“The April report matched the average of Q1.  However, on a trend basis, there has been a gradual decline since the beginning of the year, despite small upticks in February and March.

The main country breakdown shows the loss of momentum is widespread.  Germany's is at 52.1 from the 52.4 flash reading, but it remains a bright spot within Europe.  It is the third monthly increase and stands above the Q1 average of 51.2.  France ticked up to 48.4 from the flash 48.3.  It is the third month below the 50-boom/bust level.  Despite the weakness in PMI, which averaged below 50 in Q1, eurozone GDP rose 0.6% and matched its best quarter since 2013. 

Italy and Spain also disappointed.  The Italian manufacturing PMI fell to 52.4 from 53.9.  It was not expected to fall as much.  It peaked at the end of last year at 55.6 and is now below the Q1 average (53.0).  Spain's manufacturing PMI dropped to 51.8 from 53.5.  It is the lowest reading since last October, and it averaged 54.3 in Q1.”