**As seen in Risk In The Week report 01/20/22, cablefxm.co.uk/reports
Eurozone December manufacturing PMI was unrevised from the preliminary at 47.8, the figure saw a comeback from the prior 47.1 and posted a second M/m rebound, however, this was the sixth consecutive month of contraction in the survey. The metric recorded at 58.0 a year ago and at 52.1 six months ago. Some relief was seen in the new orders index as it rose to 43.1 from the prior 40.7. Within the region, Germany manufacturing PMI is now at 47.1 and France records a 49.2, both better than the prior. Other survey indicators show even sharper rebounds than the S&P Global PMI data, the ZEW Germany expectation of economic growth is now back at 16.9, up from -61.9 seen in September. Analysts at SEB say that the more benign energy outlook has been translated into a broad-based recovery, however, they still see a soft first half of 2023 and don’t expect much of a bounce back. Economists at Goldman Sachs have recently slashed their view of an eurozone recession this year, GDP is now expected to rise by 0.6% vs a previous -0.1%. On higher economic activity and stickier inflation, Goldman sees the ECB reiterating its hawkish rate hike path, the desk expects 50bps hikes both in February and March.
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