Sunday, May 17, 2009

EMU Economic Indicators Preview (Week of 18 to 24 May 2009)

  • German ZEW economic sentiment (May): improvement
  • PMI manufacturing indices Germany and EMU (May): improvement

The German ZEW economic sentiment might have improved again in May, just like the ifo business expectations and the US ISM manufacturing index did in April. German yield spreads have widened somewhat, as short-term interest rates have continued declining and long-term rates have gone up. The DAX has recovered too. On the other hand, the euro has appreciated and the crude oil price has increased.

For similar reasons, the Purchasing Managers' Indices for the German and EMU manufacturing sector are likely to have improved in May.

Following its seasonal pattern, the EMU trade balance will probably have improved in March, just like the corresponding German figure.


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