German Preliminary Manufacturing PMI rises to 65.6 in July vs. 64.2 expected, EUR/USD uninspired
|- German Manufacturing PMI arrives at 65.6 in July vs. 64.2 expected.
- Services PMI in Germany expands to 62.2 in July vs. 59.1 expected.
- EUR/USD keeps its range around 1.1770 on upbeat German PMIs.
The German manufacturing sector extends its expansionary mode into July, the preliminary manufacturing activity report from IHS/Markit research showed this Friday.
The Manufacturing PMI in Eurozone’s no.1 economy stood at this month vs. 65.6 expected and 65.1 prior. The index jumped to three-month lows.
Meanwhile, Services PMI expanded to 62.2 in July as against the previous month’s reading of 57.5 and 59.1 estimated. The index is at a record high since June 1997.
The IHS Markit Flash Germany Composite Output Index arrived at 62.5 in July vs. 60.8 expected and June’s 60.1. The gauge hit the highest on record since January 1998.
Key comments from Phil Smith, Principal Economist at IHS Markit
“Germany’s private sector economy remains in the fast lane to recovery, according to July’s flash PMI survey. Buoyed by a resurgent service sector, the survey’s headline index is now at a record high and signals that the recovery still possesses strong momentum at the start of the third quarter.”
FX implications
EUR/USD finds some respite from upbeat German Business PMIs, although keeps its range around 1.1770. The spot is almost unchanged on the day.
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