Euro Area S&P Global Composite PMI Flash

Info

History

Chart

Impact:

Low

Source: S&P Global

Latest Release:

Date:

Surprise:

2.2

Actual:

54.1

Forecast: 51.9

Previous/Revision:

Period: Mar

What Does It Measure?

The Euro Area S&P Global Composite PMI Flash measures the performance of the manufacturing and service sectors, providing insights into business activity and economic growth trends across the Eurozone. This indicator focuses on aspects such as production levels, employment, and new orders, with a reading above 50 indicating expansion and below 50 signaling contraction.

Frequency

The report is released monthly, providing an early estimate based on data collected through surveys and typically published on the first business day of each month.

Why Do Traders Care?

Traders closely monitor the S&P Global Composite PMI Flash as it is a leading indicator of economic health, influencing expectations for currency valuation, equity performance, and market sentiment. Positive results tend to bolster the Euro, while disappointing figures can lead to weakness in currency and stock markets, affecting investor confidence and decision-making.

What Is It Derived From?

The Composite PMI is derived from surveys of purchasing managers in both the manufacturing and service sectors, encompassing a wide range of industries within the Euro Area. The methodology involves a diffusion index calculation where responses indicate growth or contraction based on business expectations, with influences from weighted averages to reflect sector significance.

Description

The S&P Global Composite PMI Flash serves as a critical gauge of economic activity, capturing business conditions in key sectors and offering early insights that can influence financial markets and policy decisions. The preliminary estimate is usually highly anticipated as it sets the tone for market expectations, while subsequent revisions refine the data for accuracy.

Additional Notes

This indicator is considered a leading economic measure, typically correlating with future economic activity and trends in employment and production. The Composite PMI Flash is particularly relevant amid changing economic conditions, serving as a barometer not only for the Euro Area but also signaling potential trends in global markets.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for Euro, Bullish for Stocks. Lower than expected: Bearish for Euro, Bearish for Stocks. This PMI Flash report is typically seen as bullish if it signals strong economic growth, suggesting increased consumer and business confidence, which is good for market sentiment and investment.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Mar 24, 2023	54.1	51.9	52	2.2
Feb 21, 2023	52.3	50.6	50.3	1.7
Jan 24, 2023	50.2	49.8	49.3	0.4
Dec 16, 2022	48.8	48	47.8	0.8
Nov 23, 2022	47.8	47	47.3	0.8
Oct 24, 2022	47.1	47.5	48.1	-0.4
Sep 23, 2022	48.2	48.2	48.9
Aug 23, 2022	49.2	49	49.9	0.2
Jul 22, 2022	49.4	51	52	-1.6
Jun 23, 2022	51.9	54	54.8	-2.1
May 24, 2022	54.9	55.3	55.8	-0.4
Apr 22, 2022	55.8	53.9	54.9	1.9