28 September 2001, 17:30 OUTLOOK Euro zone data next week to show negative impact of US attacks on PMI
LONDON (AFX) - Euro zone economic figures due for release next week
are expected to show the negative impact of the terrorist attacks
against the US on the euro zone manufacturing purchasing managers
index, according to economists.
Economists said that without the attacks, they would have forecast
a moderate increase in the PMI for Steptember as the economy was
showing signs of bottoming in the early summer.
"However, to account for a possible negative influence of the
attacks in the US on purchasing managers' sentiment -- as they filled
in the questionnaire after Sept 11 -- we are projecting a modest
decline in the PMI," Schroder Salomon Smith Barney economist Jean
Mercier said.
ABN-AMRO economists agreed that with the increased probability of a
US recession and the appreciation of the euro, the manufacturing PMI is
likely to register a decline.
Economists are predicting a decline in the PMI for the service
sector, even if the survey was conducted around Sept 10 and is not
expected to show the impact of the attacks.
They said the business expectations section of the survey may
however already reflect a fall in business confidence that would put
paid to the glimmer of improvement that emerged in July.
Otherwise, euro zone producer prices for August are expected to
fall to its lowest level since Oct 1999, while unemployment for the
area is forecast to remain stable, even if some economists are
expecting a rise in jobless numbers in the coming months.
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