The first estimate for the service PMI indicator for Italy and Spain will be the mostinteresting new information in connection with today’s release of final service PMI inthe euro area. We expect both Spain and Italy’s PMIs to have improved further inApril, underscoring that growth has returned to the periphery. Euro area retail salesfor March will also be released today and will probably look weak on the surface asthe timing of the Easter holiday has weighed particularly on year-on-year growth.
In the UK, there will be considerable attention on April service PMI today as serviceconstitutes close to 80% of the economy. If it remains just close to its current levelabove 57, it will suggest that GDP continues to grow substantially above trend.
The data calendar for the US is rather thin, with foreign trade data for March the onlynotable release. These data will have an impact on the first Q1 GDP revision.
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Danske Bank