- Markit
The private sector in the Euro bloc expanded less than expected in March, while retail sales surprised to the upside, rising for the fourth consecutive months in February. The Euro zone's Markit composite PMI, which tracks both the manufacturing and services sectors, climbed to 53.1, up from 53.0 in February. Services PMI increased to 53.1 in March, up from 53.3 recorded previously, while manufacturing PMI edged up to 51.6 in the reported month. At the same time, retail sales in the Euro zone increased 0.2% in February on a monthly basis, following the 0.4% gain in January. On an annual basis, retail sales advanced 2.4% during the reported month, after an 2.0% rise in the previous month, and versus the forecast of a 1.9% pick up. The Euro zone's economic performance continued to be fragile as the currency bloc's GDP grew 0.3% in the final three months of 2015, the same pace as in the July to September period. For all of 2015, GDP in the Euro area was up by 1.6% year-on-year.
A separate report showed, German factory orders declined significantly in February. Measured on a monthly basis, factory orders decreased 1.2%, following January's 0.1% drop. On an annual basis, the gauge increased by 0.5%, missing expectations of 2.2% growth, while the previous month's 1.1% increase was also revised down to 0.4%.
© Dukascopy Bank SA