Eurozone: key events for next week – Danske Bank

Analysts from Danske Bank take a look into next weeks key economic events of the Eurozone.

Key Quotes: 

“In the euro area, the consumer confidence is due for release on Thursday. Consumer confidence rose from -3.6 in April to -3.3 in May, which is its highest level since 2007. We believe that consumer confidence will increase further as employment continues to be a tailwind and uncertainty over a euro-breakup is fading with the outcome of the French election.”

“On Friday, we get the PMI figures. The manufacturing PMI rose from 56.7 in April to 57.0 in May while the service PMI declined from 56.4 in April to 56.3 in May, leaving composite PMI unchanged. Seemingly, the weak manufacturing PMIs observed in recent months in the US and China did not drag euro-area PMIs down in May, but could still weigh on the June figures. We expect PMIs to remain somewhat unchanged in June, as activity in the euro area is still strong, although risks seem tilted to the downside. The new orders is currently at a six-year high and the order-inventory balance, which is usually a good leading indicator, has started to diverge and could drag manufacturing PMI down in June. Additionally, the weakness in the external environment already mentioned could drag on export orders.”

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