Eurozone: PMIs to give better idea of how much political uncertainty may be weighing on sentiment - TDS

Research Team at TDS suggests that the EZ PMIs should give us a better idea of how much political uncertainty may be weighing on sentiment as we draw closer to the spring elections in the Netherlands and France.

Key Quotes

“Our models are pointing to the PMIs still holding up well in Feb, but with the normal lags in the data, starting to soften in March. So we look for a bit of upside risk with the PMIs basically unchanged from the month before, compared to the small declines that markets are looking for, but acknowledge the higher than usual level of uncertainty.”