Eurozone Preliminary Manufacturing PMI arrives at 54.7 in Jan, EUR/USD nears 1.2200
|- Eurozone Manufacturing PMI arrives at 54.7 in Jan vs. 54.6 expected.
- Bloc’s Services PMI stands at 45.0 in Jan vs. 45.0 expected.
The Eurozone manufacturing sector activity slowed a tad bit this month, although bettered the consensus forecast, the latest manufacturing activity survey from IHS/Markit research showed on Friday.
The Eurozone Manufacturing purchasing managers index (PMI) improved from 55.2 in December to in January and beat 54.6 expectations while the Services PMI dropped to in Jan vs. 45.0 expected and 46.4 last.
The IHS Markit Eurozone PMI Composite arrived at 47.5 in Jan vs. 47.9 expected and 49.1 previous.
Comments from Chris Williamson, Chief Business Economist at IHS Markit
“A double-dip recession for the eurozone economy is looking increasingly inevitable as tighter COVID19 restrictions took a further toll on businesses in January. Output fell at an increased rate, led by worsening conditions in the service sector and a weakening of manufacturing growth to the lowest seen so far in the sector’s seven-month recovery.”
“Some encouragement comes from the downturn being less severe than in the spring of last year, reflecting the ongoing relative resilience of manufacturing, rising demand for exported goods and the lockdown measures having been less stringent on average than last year.”
FX implications
The shared currency extends gains fulled by the German PMI readings, with EUR/USD fast approaching the 1.2200 level.
The spot trades at 1.2187, up 0.18% on the day, as of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.