German Preliminary Manufacturing PMI drops to 62.7 in August vs. 65.0 expected, EUR/USD tests 1.17
|- German Manufacturing PMI arrives at 62.7 in August vs. 65.0 expected.
- Services PMI in Germany eases to 61.5 in August vs. 61.0 expected.
- EUR/USD drops further to test 1.1700 on downbeat German Manufacturing PMI.
The German manufacturing sector slows its pace of expansion in August, the preliminary manufacturing activity report from IHS/Markit research showed this Monday.
The Manufacturing PMI in Eurozone’s no.1 economy came in at 62.7 this month vs. 65.0 expected and 65.9 prior. The index sank to six-month lows.
Meanwhile, Services PMI dropped from a record high of 61.8 to 61.5 in August as against 61.0 estimated. The index hit two-month lows.
The IHS Markit Flash Germany Composite Output Index arrived at 60.6 in August vs. 62.2 expected and July’s 62.4. The gauge also reached the lowest levels in two months.
Key comments from Phil Smith, Principal Economist at IHS Markit
“With August’s flash PMI still firmly inside growth territory, the recovery of the German private sector looks to be continuing at a healthy pace. Although growth has slowed down since July, the data are still pointing to a stronger economic expansion in the third quarter than the provisional 1.5% increase in GDP seen in the three months to June.”
FX implications
EUR/USD fails to find any respite from the mixed German Business PMIs, keeping its range close to 1.1700. The spot is adding 0.11% on the day.
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