Euro area flash PMIs: Information to plug into the Q2 GDP forecast – RBC CM

Research Team at RBC Capital Markets, suggests that the forthcoming Euro area flash June PMIs will provide another piece of information to plug into the Q2 GDP forecast.

Key Quotes

“Up to this point, the PMI-based GDP indicator has been signalling Q2 growth of 0.3% q/q, slightly below RBC’s 0.4% q/q forecast. However, the near-term prospects don’t point to a pick-up in momentum, as the forward-looking new orders component fell in May by more than a point relative to the Q1 average.”