What is it?
PMI stands for Purchasing Managers' Index. The Flash Services PMI number is based on surveys of over 300 business executives in private sector services companies. It illustrates how active the purchasing managers in the services sector are. This data is released each month. It is a good indicator to compare how the industry is performing compared to the previous month.
What are the Expectations for Both Releases?
French Flash Services PMI
The forecast for the French Flash Services PMI is 53.0, which is higher than the previous release. From this, we can see that the experts are positive about the situation in France. The expectation is above 50, which means the economy could be in recovery.
German Flash Services PMI
The forecast for the German Flash Services PMI is 52.0, which is also higher than the previous release. Again, we can see that the experts are positive about the situation in Germany. With an expectation above 50, we can assume the economy could be in recovery.
Professional Insight
European Central Bank President Christine Lagarde said: “Incoming economic data, surveys and high-frequency indicators suggest that economic activity may have contracted again in the first quarter of this year, but point to a resumption of growth in the second quarter.” This could be a really strong signal for the recovery of the economy. Based on the forecasts, this speech holds water. Let’s see what happens in a few hours.
What happens if...
Usually, if the data is greater than 50, it indicates that the industry is expanding, or thriving. So people would like to see a number above 50. The market will take that as a good sign of economic growth.
What happens if…
If the figure is lower than 50, it indicates a contraction or a decrease. In this situation, we would like to be more cautious about any investment. The lower figure should be taken as a bearish signal for the EUR.
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