French, German flash manufacturing PMIs and German IFO miss estimates

Markit’s European PMIs are not giving many good news. French manufacturing PMI falls to 44.4 in May from 46.9 in April, a 36-month low according to Markit, and well below estimates of 47, while services PMI is unchanged at 45.2, below estimates of 45.7.

Meanwhile, German manufacturing PMI falls to 45.0 in May, a 35-month low, and below estimates of 47, while services PMI came in at 52.2, unchanged from April, and in-line with the consensus estimates of 52.0.

Eurozone as a hole, the PMI composite comes in at 45.9, again, missing estimates of 46.6.

The chart below from Bloomberg Brief’sMichael McDonough shows that the disappointing PMI figures out from Europe is pointing to a deeper recession in Europe.

Source: Bloomberg Brief

Meanwhile, German IFO survey of business climate has also missed estimates. The May Business Climate comes in at 106.9, down from 109.9, and below estimates of 109.4. The chart below shows the German IFO Business Climate index vs. German’s GDP Q/Q growth.

Source: Eurostat, IFO Institute

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.