Slower than expected sales growth over the course of the year led to a trimming of marketing spend compared to that originally budgeted for the year. Companies are clearly entering 2006 in a more cautious mood than in recent years. |
That's great for corporate profitability. |
That's great for corporate profitability. It will cause concerns for the European Central Bank, however. |
The euro zone manufacturing PMI was just above the 50.0 level signalling a marginal improvement in business conditions, |
The overall PMI shows we are still in rate cut territory. But the PMI has been below this (current) level and the ECB has not cut rates, so this survey on its own will add little to the chance of a rate cut. |
Things are very much dependent on exports at the moment and the euro may hold the key to Italy's performance. |
This is quite unusual and it's a very promising result. |
This survey is indicating that the move in (ECB) rates might be earlier rather than later, |
This survey is indicating that the move in (ECB) rates might be earlier rather than later. |
Unlike other shows of this kind ours is one where people compete to not win the title. |
We can afford for the index to fall from the highs that we saw at the turn of the year without losing too much growth momentum. |
Without Germany seeing its improvement in growth, we would have seen a much stronger downturn (in the euro zone index), |