German Preliminary Manufacturing PMI comes in at 53 in August vs. 52.5 expected
|- German Manufacturing PMI arrives at 53.0 in August vs. 52.5 expected.
- Services PMI in Germany fall to 50.8 in August vs. 55.1 anticipated.
According to the preliminary manufacturing activity report from IHS/Markit research, released this Friday, the German manufacturing sector improved further in August. In fact, the German manufacturing purchasing managers index (PMI) arrived at 53.0 in August versus 52.5 expected and 51.0 previous, 30-month highs. Meanwhile, Services PMI fell to a two-month low level of 50.8 from 55.6 recorded in July.
Commenting on the flash PMI data, Phil Smith, Associate Director at IHS Markit said:
“Following the rapid gains in the German PMI in each of the previous three months that coincided with the initial reopening of the economy, August’s flash results show the recovery having lost some momentum as the headline index dipped from July’s near two-year high of 55.3 to 53.7. The slowdown was centred on the service sector, where growth was close to stalling amid renewed travel restrictions and a sustained decline in overall employment that continues to undermine domestic demand.”
FX implications
Upbeat manufacturing PMI did little to impress the euro bulls, with the EUR/USD pair sliding further below mid-1.1800s to refresh session lows.
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