German June data: Final Manufacturing PMI improves to 45.2, Jobless Rate rises to 6.4%
|- German Manufacturing PMI arrives at 45.2 in June vs. 44.6 expected.
- Employment Rate in Germany rises to 6.4% in June vs. 6.6% expected
The German manufacturing sector contraction eases further in June, the final manufacturing activity report from IHS/Markit research showed this Wednesday.
The German Manufacturing purchasing managers index (PMI) arrived at 45.2 in June versus 44.6 expected and 44.6 previous.
Separately, the German Unemployment Rate arrived at 6.4% in June vs. 6.6% expected and 6.3% last. The Unemployment Claims rose by 69K in June vs. +120K expected and May’s +238K.
Key comments from Phil Smith, Principal Economist at IHS Markit
"We can take away positives and negatives from June's manufacturing PMI survey. On the one hand, the data show more German manufacturers starting to ramp up production, and a regaining of confidence which has been severely lacking in recent months. But on the other, demand remains very much subdued and is holding back any recovery.’
"The lack of new orders means manufacturers are relying on ever-dwindling backlogs of work to support production, and until new orders start to pick up and factories get back to somewhere near capacity, jobs across the sector are at risk.”
FX implications
The shared currency seems little impressed by the upbeat German PMI numbers, with EUR/USD trading modestly flat at 1.1230. The spot recovered from a daily low of 1.1216.
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.