Rising Eurozone PMIs Make Case for Another ECB Hike

Dow Jones
Yesterday

0930 GMT - September's eurozone PMIs show economic activity remains robust despite surging oil prices, low water levels and supply-chain disruptions, and this increases prospects of another interest-rate hike, ING's Carsten Brzeski says in a note. The eurozone composite PMI rose to 53.1 in September from 52.0 in August, its highest level in almost three-and-a-half years. "Today's PMI readings make it more difficult for even the European Central Bank's most dovish policymakers to rule out another rate hike," Brzeski says. The eurozone looks set to deliver decent third-quarter growth, he says. The surveys also show inflationary pressure have built again, with both input costs and output prices increasing at the highest rates in four months, Brzeski says.

 

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