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Economy in Brief

EMU PMIs Make Strong April Gains
by Robert Brusca April 22, 2010

The EMU PMIs for MFG and Services each made strong gains in April. The gain in MFG was strong and is the 22nd greatest gain out of 154, a top 13% gain. The services index rise in April ranked 9th out of 141 observations placing it in the top 6% of its range. April was a good month of stepped up activity in the Euro-Area. The levels of the MFG and Service indices place the MFG index in the 89th percentile of its range and the services measure in the 70th percentile of its range. Both are strong readings (top 11th percentile and top 30th percentiles, respectively). 

The services index is structurally higher than the MFG index. Its average is 53.66 compared to 51.18 for MFG over the past 140 months when both indices existed. 

The sharp rebound in the PMIs this month is another step in the direction of believing in a rebound in the Euro-Area region. To be sure other macro-data continue to run hot and cold. The UK may have the most mercurial readings in Europe (it is an EU member, not an EMU member). Greece’s fortunes also continue to blow hot and cold. But the strong EMU PMIs are reassuring. The services index is at its strongest Since August 2007. The MFG index is at its strongest level since June of 2006. These are substantial benchmarks in establishing the new relative strength of the ongoing expansion.

FLASH Readings
Markit PMIs for the Euro-Area
  MFG Services
Apr-10 57.55 55.51
Mar-10 56.65 54.08
Feb-10 54.23 51.81
Jan-10 52.39 52.50
Segment Averages
3-Mo 54.42 53.71
6-Mo 52.80 53.39
12-Mo 48.39 50.63
140-Mo Range
High 60.47 62.36
Low 33.55 39.24
% Range 89.2% 70.4%
Range 26.92 23.12
AVERAGE 51.18 53.66

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