The Eurozone released their final Manufacturing PMI this morning, which fell for the second month in a row, showing signs that the growth might have reached the peak. The figure still remains above 50 with the latest reading posting 58.5, indicating the sector is still expanding, however two months ago the figure reached its peak of 60.6. The individual readings from Italy and France also fell from the previous month. However, Germany and Spain saw growth. The PMI report showed job growth in this sector had been seen across the Eurozone and the business confidence remains strong despite the drop in the index.
UK Prime Minister, Theresa May will be delivering her big Brexit speech this afternoon. In her speech, she is expected to go into detail as to how the UK’s relationship with the EU post Brexit should work, after publicly rejecting the EU’s Brexit Withdrawal Treaty earlier in the week. In her speech, she will describe how the UK will follow some of the EU’s rules, however ‘diverge’ from others. May is expected to recognise this is not about ‘cherry picking’ and the UK cannot get everything it wants. The speech will also aim to bring the divided country together.
Across the pond, the University of Michigan will be releasing their revised Consumer Sentiment and inflation expectations. The Consumer Sentiment is expected to drop one point from the previous reading to 98.9.