Euro-zone PMIs highlight the downside risks to occupier demand

This morning’s flash euro-zone PMI release suggests that economic recovery in the region may have ground to a virtual halt. The fact that euro-zone manufacturing output is now barely rising supports our forecast that a recovery in euro-zone industrial rents is far from imminent. Service sectors were also hit hard. But for now, service sector employment is still rising and, coupled with a restricted office development pipeline, this suggests that euro-zone office rents will fare better.