The Euro-Zone February manufacturing PMI was revised down to 33.5 from 33.6 reported initially. Expectations had been for a confirmation of the preliminary number and the downward revision points to acceleration in the pace of contraction in the manufacturing sector. The Euro-Zone is likely to see at least two more quarters of negative growth and the weak number will add to arguments for another rate cut at Thursday’s council meeting.
Meanwhile, French final February manufacturing PMI was revised down to 34.8 from 35.4 reported initially, while the German reading was revised down to 32.1 from 32.2 reported initially. The Italian manufacturing PMI fell to 35.0 from 36.1 in January. Readings are across the board weaker than expected and point to a downward revision in the Euro-Zone reading for February, which will add to growth concerns and arguments for another sizable rate cut at Thursday’s council meeting.