Euro-zone Sentiment Slumps; German Private Sector Activity Slows

Arthi Gupta
19 Apr, 2011
New York City

Euro-zone private sector activity improved, current account deficit widened and consumer sentiment dipped. European car registrations fell in March. German private sector activity slowed in April. Austria PPI Inflation rose to a 6-year high in February.

[R]12:45 PM Frankfurt – Euro-zone private sector activity improved, current account deficit widened and consumer sentiment dipped. European car registrations fell in March. German private sector activity slowed in April. Austria PPI Inflation rose to a 6-year high in February.[/R]

Euro-zone Current Account Deficit Widens

The seasonally adjusted current account of the euro area showed a deficit of €7.2 billion in February larger than the €5.6 billion shortfall in January, the European Central Bank said today.

The deficit for February reflects €8 billion shortfall in current transfers and €2.3 billion deficit in goods, which were partially offset by a €3.3 billion surplus for services.

The 12-month cumulated seasonally adjusted current account recorded a deficit of €49.6 billion in February, which was around 0.5% of euro area GDP. The deficit was €15.9 billion a year earlier.

Data from the European Central Bank showed that euro-zone current account showed a surplus of €6 billion in the fourth quarter compared to a deficit of €6.2 billion in the previous three months.

The external current account deficit of the EU27 region widened in the fourth quarter, latest data from Eurostat showed on Tuesday.

The current account deficit grew to a revised €18.2 billion from third quarter''s €15.5 billion shortfall. The fourth quarter figure was initially reported as €30.4 billion, while the third quarter deficit was originally recorded at €19.7 billion.

Euro-zone Consumer Sentiment Dips

Euro-zone consumer confidence fell more than expected to minus 11.4 in April from minus 10.6 in March, a flash estimate from the European Commission showed.

In the EU27, the consumer confidence index dropped to minus 13.7 in April from minus 12.8 in March. The European Commission is set to publish the final release on April 29.

Euro-zone Construction Output Drops

Euro-zone construction output declined 0.7% on a monthly basis in February, following a 3.6 % increase in January, Eurostat said.

Annually, output climbed 3.5% in February rebounding from a 4.6% drop in January.

In European Union member states, construction output rose 0.7% on a monthly basis and climbed 2.9% annually in February.

European Car Registrations Decline

European new car registrations declined in March, data from the European Automobile Manufacturers'' Association showed today.

New car registrations totaled 1,558,915 units in March, down 5% from the same period of last year. That followed a 0.9%t rise in February.

France and Germany recorded 6.1% and 11.4% growth respectively while registrations fell 7.9% in the UK and 27.6% in Italy.

During the first quarter, demand for cars fell 2.3% with total registrations at 3,583,185 units.

Euro-zone Private Sector Growth Improves

Euro-zone private sector activity improved in April, survey results from Markit Economics showed on Tuesday.

The flash composite output index edged up to 57.8 in April from 57.6 in March, signaling the second-strongest monthly increase in output since June 2007.

Activity in the manufacturing sector climbed to the second-highest level since June 2006. The flash manufacturing output index rose to 60 in April from 58.5 in March.

The service sector activity accelerated to the second strongest since June 2007. However, the rate of growth slowed from the previous month with the business activity index posting 56.9 in April, below 57.2 in March.

French Private Sector Activity Rises

French private sector activity rose to its highest level in over ten-and-a-half years in April, led by strong service sector, survey data from Markit Economics showed on Tuesday.

The flash composite output index rose to 62.4 in April from 59.1 in March. The latest reading was the highest since September 2000.

The services PMI climbed to 63.4 in April from 60.4 in March. The score was the highest since September 2000.

The manufacturing PMI climbed to a four-month high of 56.9 in April from 55.4 in March.

German Private Sector Growth Slackensl

Germany''s private sector activity grew at a slower pace in April, survey results from Markit Economics showed.

The seasonally adjusted flash composite output index fell to 59.9 in April, a 5-month low, from 60.4 in March.

The flash services Purchasing Managers'' Index declined to 57.7 in April from 60.1 in March. The flash PMI for manufacturing rose to 61.7 in April from 60.9 in March.

Austria Producer Price Index Climbs

Austria''s producer price index increased 5.3% annually in February, faster than the upwardly revised 5.2% recorded in January, data released by Statistics Austria showed on Tuesday. The latest increase was the sharpest since February 2005, when prices also rose 5.3%.

Prices of intermediate goods, which contributed most to the inflation growth, climbed 8.1%. Energy prices grew 8.2%, while prices of capital goods rose 1.5% in February.

On a monthly basis, producer prices rose 0.4% in February after increasing an upwardly-revised 0.5% in January.

Portuguese Producer Price Inflation Increases

Portugal''s producer price index increased 7% annually in March, faster than February''s 6.4% growth, data released by Statistics Portugal showed on Tuesday.

Energy prices grew 13.7% in March after increasing 12.8% in February. Prices of intermediate goods moved up 6.9% during the month, following February''s 6.8% increase.

On a monthly basis, producer prices grew 0.9% in March faster than the upwardly revised 0.8% rise recorded in February.