The flash reading for the PMI business confidence data recorded a further manufacturing decline to a 3-month low of 46.6 for April from 47.9 previously and below expectations of 48.4. The services index strengthened to a 12-month high of 54.9 from 52.9 in March and above expectations of 52.9. The composite outlook index also posted a 12-month high. Costs increased at the slowest rate since March 2021, but there was still a sharp increase in output prices with only a slight slowdown from record highs posted in April 2022. The overall reaction was limited with global trends tending to dominate. Over the weekend, Bank of England Deputy Governor Ramsden stated that high inflation is a bigger risk than over-tightening and that he is focussed on staying the course on tightening. The comments maintained strong market expectations of a May rate hike. CFTC data recorded a switch to a small, non-commercial long Sterling position for the first time since February 2022.
No Key Data
Both the French and German PMI releases recorded a steeper monthly manufacturing contraction on the month with a stronger rate of growth in services. This pattern was repeated in the Euro-zone data as a whole as the manufacturing index dipped further to a 35-month low of 45.5 from 47.3 previously and below consensus forecasts of 48.0. The services sector index strengthened to a 12-month high of 56.6 from 55.0 and above market expectations of 54.5. Although output prices increased at a strong rate for the month, it was the slowest rate of increase for 15 months.
No Key Data
The US manufacturing PMI index strengthened to a 6-month high of 50.4 for April from 49.2 and above consensus forecasts of 49.0. The services-sector index also strengthened to a 12-month high of 53.7 from 52.6 and above expectations of 51.5. New orders increased at the fastest rate for 11 months, but export orders continued to decline. There was a faster rate of increase in input costs for the month and output prices increased at the fastest rate for seven months. The data eased concerns surrounding the US outlook and the increase in inflation expectations also reinforced expectations that the Federal Reserve would have to maintain an aggressive monetary stance to curb inflation.
No Key Data