Forex Flash: EZ PMIs disappoint while UK surprises– BBH

FXstreet.com (Barcelona) - Despite comfort coming from the US, Eurozone PMIs disappointed this morning, confirming a soft end to 2012 in the region.

The 46.1 reading, from a 46.3 flash reading, represents a three-month low. German results were disappointing with the PMI down to 46.0 from the 46.3 flash reading. France was unchanged from the flash reading at 44.6. Italy was a pleasant surprise, rising to 46.7 from 45.1 in November. This is the highest since March. New orders rose to 46.0 from 43.6. Spain, on the other hand, was disappointing with a 44.6 reading after 45.3 in November.

The surprise of the morning came from the UK and saw Manufacturing PMI rise to 51.4 from 49.2 while the consensus had expected an unchanged reading. The team note that this is the strongest showing since September 2011. They write, "Of note, the measure of output jumped to 54.0, the highest since April 2011, and new orders rose the fastest since March. This fans hopes that the UK economy may have avoided a Q4 contraction. That said, it is a lot of weight to put on the manufacturing survey given its share of the economy. More important will be the service PMI due out Friday."