Gavekal Capital: Divergence: German Construction Output versus Construction PMI
Thursday, April 9, 2015
Divergence: German Construction Output versus Construction PMI
Historically, there has been a fairly strong relationship in the trends of German construction output and the results of Markit's PMI Construction survey. However, yesterday's positive data release of the construction PMI painted a much different picture of the sector than today's release of industrial (and construction) ouput:
While this could be a temporary aberration, our interest is always peaked when survey or opinion data differ significantly from solid, fact-based numbers.