Spain PMI at a 84-month high

Markit’s June Manufacturing PMIs for the Eurozone came out this morning. And overall, the numbers showed less strength across the board, with France showing particular weakness.

You can see that Spain and Ireland were doing well though. Spain was at a 7-year high in fact. This is why I am bullish on Spain. The breakout in the economy is not just a basing effect.

The question now goes to the policy framework Europe is using. Supposedly, Europe has ended its austerity framework, at the behest of the Italian Premier Renzi. That’s good for Spain because the debt deflation dynamics will come back straight away if policy is restrictive enough.

Let’s see how long this policy repireve lasts.