Eurozone Preliminary Manufacturing PMI beats estimates with 39.5 in May, EUR/USD unmoved
|- Eurozone Manufacturing PMI arrives 39.5 in May vs. 38.0 expected.
- Bloc’s Services PMI stands at 28.7 in May vs. 25.0 expected.
The Eurozone manufacturing sector attempted recovery from the sharpest deterioration on record this month, the latest manufacturing activity survey from IHS/Markit research showed on Thursday.
The Eurozone manufacturing purchasing managers index (PMI) rebounded from an all-time low of 33.4 in April to 39.5 in May and surpassed 38.0 expectations while the Services PMI jumped off a record low of 12.0 reported in April to 28.7 in May vs. 25.0 expected.
The IHS Markit Eurozone PMI Composite arrived at 30.5 in May vs. 24.0 expected and 13.6 last (record low).
Comments from Chris Williamson, Chief Business Economist at IHS Markit
“The eurozone saw a further collapse of business activity in May but the survey data at least brought reassuring signs that the downturn likely bottomed out in April.”
“Second quarter GDP is still likely to fall at an unprecedented rate, down by around 10% compared to the first quarter, but the rise in the PMI adds to expectations that the downturn should continue to moderate as lockdown restrictions are further lifted heading into the summer.”
FX implications
The shared currency pays little heed to the upbeat Eurozone PMI readings, as EUR/USD keeps its range near 1.0970.
EUR/USD technical levels to watch
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