The Bottom Line
- Uncertainty about Brexit’s impact may have rippled through financial markets, but so far the biggest economies in continental Europe seem to have taken it in stride.
- The latest PMI data—reflecting purchasing managers’ answers to a range of questions about business conditions—suggests growth could continue expanding at a slow but steady pace.
- Coming in at 53.3, the Eurozone Flash Composite PMI for August, was better than expected—and the highest in seven months.1
- The latest data from Italy and Spain (from July) also suggest continued expansion, but at a slower pace than three months ago.2
- In Germany, the August PMI data for the Continent’s strongest economy slipped slightly from 54.5 in July to 54.4, but that remains the best showing in the region.
- Meanwhile, France jumped from 50.1 in July to 51.6 in August; a significant lift and France’s best level since last October.
- Across the Channel, however, the data is less encouraging. The July Composite PMI for the UK was 47.5, dramatically lower than the 52.5 figure for June, and suggests contraction.
- Source for all data is Bloomberg.
- The August PMIs for both countries will be reported on September 1st.
About this chart:
The chart above shows the latest Composite PMI level available (blue column) and the PMI levels from 3 months earlier (red square) and 12 months earlier (yellow triangle) for the Eurozone, Germany, France, Italy, Spain and the United Kingdom.
Read the complete update here, or see what other money managers have to say about Brexit's impact in our blog archive.
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