Eurozone Preliminary Manufacturing PMI beats estimates with 62.6 in July

Eurozone Manufacturing PMI arrives at 62.6 in July vs. 62.5 expected.
Bloc’s Services PMI rises to 60.4 in July vs. 59.5 expected.

Dhwani Mehta FXStreet

The Eurozone manufacturing sector activity remained in expansion in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Friday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 62.6 in July vs. 62.5 expectations and 63.4 last. The index was at its weakest in four months.

The bloc’s Services PMI jumped to 181-month highs of 60.4 in July vs. 59.5 expected and 58.3.

The IHS Markit Eurozone PMI Composite expanded further to 60.6 in July vs. 60.0 expected and 59.5 previous. The gauge hit 252-month highs.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“The eurozone is enjoying a summer growth spurt as the loosening of virus-fighting restrictions in July has propelled growth to the fastest for 21 years. The services sector, in particular, is enjoying the freedom of loosened COVID-19 containment measures and improved vaccination rates, especially in relation to hospitality, travel and tourism.”

“Supply chain delays remain a major concern for manufacturing, however, constraining production and pushing firms’ costs higher. These higher costs have led to a near record increase in average selling prices for goods and services, which is likely to feed through to higher consumer prices in coming months.”

FX implications

The shared currency got a fresh boost from upbeat German and Eurozone Business PMIs, fuelling a bounce in EUR/USD from 1.1763 daily lows.

The spot currently trades at 1.1776, up 0.06% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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