The European factory output expectations have risen after positive figures last month. No surprise in Germany leading the charge. The reward has been an upgraded forecast to beat at 53.1 from the Markit flash German PMI. France has failed to beat expectations but it continues to improve on a month to month basis. The flash reading is an incomplete picture but the French and German data are good indicator of the state of the two largest economies.
The different growth paths of Germany and France are telling as Europe is struggling to regain traction. The European Central Bank launched their QE program with the aim to stimulate growth in all markets, but it has always been the case that bigger market are better positioned to reap the benefits of the easing program.