EUR: be ready for data on Thursday
FXBAZOOKA.com - The euro area is due to release manufacturing & services PMIs for August tomorrow. This is the first report to signal whether sanctions against Russia – and Moscow's countersanctions – are dragging down activity further across the euro zone.
Still, as the analysts at RBC put it, it doesn’t really matter whether PMIs will be slightly up or down, because “the underlying pace of growth is fairly lackluster”.
Although PMI data represent the result of the purchasing managers’ survey and don’t always translate into output, they do help to spot the economic turning points. This spring the European PMIs were declining and although they are mostly above the critical 50 level, the economic picture for the euro area looks discouraging.