The industrial numbers in the two biggest economies in the Euro Area - France and Germany - for March exceeded all initial forecasts. The Markit institute posted an overwhelmingly positive services and manufacturing results.
According to the four economic surveys' findings, notable gains were registered in both industry sectors in both countries. The most significant improvement was observed in German manufacturing, which rose by 5.9 index points to an all-time high.
The French manufacturing PMI was revised upwardly to 58.8 index points, while the services PMI was revealed to be at 47.8 points. Meanwhile, the German services PMI, which tends to be the most rigidly scrutinised by the market, rose well-above the initial market expectations to 50.8 index points.
These substantial improvements, particularly in German manufacturing, were attributed to a record growth in factory activity, underpinned by a massive uptick in demand. This is especially apparent in Asia, where consumption grew markedly last month.
Latest Germany flash #PMI data pointed to a solid rise in private sector activity during March. The rate of growth accelerated to a 3-year high amid easing COVID-19 restrictions. Read more: https://t.co/YmhnFvBUay pic.twitter.com/FnW9jvdkpj— IHS Markit PMI™ (@IHSMarkitPMI) March 24, 2021
Today's data represents excellent news for the health of the economic activity of the Euro Area, where the partial easing of government restrictions runs parallel to the arduous process of vaccine rollout.
German stocks opened today's session with a gap, though they appear to be recovering. Meanwhile, the robust industrial data in the Eurozone underpins a solid growth in global demand, which is driving the energy market higher.
Following Yesterday's massive downswing in the price of crude oil, which was successfully projected by our recent analysis, the price of the commodity recuperated today.
As can be seen on the daily comparison chart below, the French CAC 40 and the German DAX indices continue to advance in strong uptrends, despite recent ripples. They are likely to strengthen because of today's news; however, they continue to lag behind U.S. stocks.