01 February 2012 at 12:38 GMT
While manufacturing for the Eurozone as a whole is still contracting, we have mainly seen better than expected PMIs for January from various European countries today.
Eurozone PMI Manufacturing only climbed to 48.8 from 46.9, but all of Norway, Sweden, Germany and the U.K. saw huge jumps in their respective PMIs for manufacturing. And what is more, all of them went from contraction (far) into expansion. Italy also saw a better number, but remains in contraction with a reading of 44 up from 43.3. Switzerland was the worst performer with a decline in its PMI to sink deeper into contraction.
Obviously, one data point does not a trend make, but the fact that so many countries showed progress is encouraging*,**. Even with these improvements the Eurozone could very well print a negative 1Q'12 GDP growth rate just like we expect for 4Q'11 with the latter scheduled for release on 15 February.
* Danish PMI Manufacturing dropped to 54.3 from 59.4.
** Earlier today also saw the release of Chinese PMI Manufacturing. The index rose to 50.5 from 50.3 prior and 49.6 expected.