NTC research released the Eurozone PMI Manufacturing index levels for October today. As expected, the surveys came in at significantly bearish levels with the aggregate Eurozone at 41.1 -lower than any point in over ten years.
The German PMI index registered at 42.9, 1.78 points higher that the aggregate, 1.39 higher than the UK and 2.29 higher than France.
The relative resilience of German manufacturing so far supports our continuing thesis that the economy there is sounder structurally than the remainder of the major European nations. They are less levered. Boring is good.
As the data changes, so will our positions. For now however, the math continues to support our thesis that Germany is poised to outperform its neighbors and partners.