The Day at a Glance | February 21 2022

The Top

*PMI`s point out that there was a strong recovery in Europe`s economy during February; prices accelerated at a record pace.

*The Kremlin denies that a meeting between Biden and Putin to resolve tensions in Ukraine has been confirmed.

*Zhenro Propertires Group Ltd. is China`s most recent developer to warn of a possible default.

Economic environment

Europe`s economy improved during February. According to leading economic activity indicators made public by IHS/Markit, Europe`s economy logged an important rebound in activity during February after Omicron`s negative impact in January. The Composite PMI reached its highest level in the last 5 years and exceeded estimates by setting at 55.8 (vs 52.9e.), led by the services sector (55.8), which recorded an acceleration in activity as the virus`s most recent wave in the region passed. Manufacturing activities maintained strong levels of growth, even though they became slightly more moderate during February and increased at their slowest pace in 2 months (58.4). The lifting of restrictions and mitigation measures during February helped boost an important recovery in demand in the tourism, travelling and entertainment sectors. Employment also increased, especially in the services sector – in light of positive future expectations regarding the reopening. Nevertheless, surveys still show persistent delays in the delivery of orders and disruptions in production chains that hold back supply and prevent it from being able to meet demand. With this, consumer price sub-indices logged their largest monthly increase since the survey exists; an inflationary dynamic that is reinforced by growing energy prices and wage increases in recent months.