There is no escaping the fact that Eurozone ‘flash’ PMI indices will remain low in the near-term, given the lack of external traction and the strong constraints on domestic demand. Indeed, we expect GDP growth to remain mildly negative until the end of this year. That is not to say that business confidence cannot rebound slightly from recent lows, especially in the more cyclical sectors, as a result of a further improvement in financial conditions and market sentiment, in particular. We look for the manufacturing PMIs to show a modest improvement this month, led by Germany, but we stick to the view that the services ... (full story)