Europe: Mixed economic releases - ANZ

Analysts at ANZ points out that the European region posted mixed economic in the previous session with manufacturing PMI surging high while the employment data paints dismal picture.

Key Quotes

“The final euro-zone manufacturing PMI for April rose to a cycle high of 56.7, while the UK measure hit a 3-year high (57.3). The new orders and export orders indices for both rose strongly. Both point to a pickup in Q2 growth prospects.”

“However, the March unemployment rate for Europe was unchanged at 9.5%, where it has been stuck for three months. Germany may be at a historic low of 3.9%, but France (10.1%), Italy (11.7%) and Spain (18.2%) are not. The generational divide got even larger too with youth unemployment at 19.4%, which is up from 19.1% last year. So despite better growth prospects, a limited labour market recovery suggests wage growth will remain subdued.”