Latest data released by Markit - 16 December 2020
- Prior 38.8
- Manufacturing PMI 51.1 vs 50.1 expected
- Prior 49.6
- Composite PMI 49.6 vs 43.0 expected
- Prior 40.6
That's a solid beat on the headline estimate, as the services sector jumps back after the slump in November. Business activity is still seen contracting overall, but only at a marginal pace compared to the drop in recent months.
This is providing an added lift to European equities to start the morning. EUR/USD is also at the highs for the day now, at 1.2176 and testing resistance around 1.2175-78.
Markit notes that:
"Following the initial contraction after the reimposition of lockdown measures in November, there was a far softer decline in French business activity during December. Although strict COVID-19 measures remained in place, private sector firms posted only a marginal decline in activity. More significant, however, was the return to growth territory for new orders. The result marked the first improvement in demand for four months, and offers hope that clients are now beginning to look beyond the current economic downturn. With lockdown restrictions having eased this week and a clearer pathway to immunising the population ahead, firms can now begin working back up towards precoronavirus levels of activity. That expansionary mindset was exemplified by the first increase in employment for ten months and confidence levels reaching their highest since January."
