Eurozone Preliminary Manufacturing PMI beats estimates with 63.3 in April

Eurozone Manufacturing PMI arrives at 63.3 in Apr vs. 62.0 expected.
Bloc’s Services PMI expands to 50.3 in Apr vs. 49.1 expected.

Dhwani Mehta FXStreet

The Eurozone manufacturing sector activity improved much beyond expectations in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Friday.

The Eurozone Manufacturing purchasing managers index (PMI) improved from 62.5 in March to 63.3 in April and beat 62.0 expectations by a big margin. The gauge hit the highest since June 1997.

The bloc’s Services PMI jumped to eight-month highs of 50.3 in April vs. 49.1 expected and 49.6 last.

The IHS Markit Eurozone PMI Composite expanded to 53.7 in Apr vs. 52.8 expected and 53.2 previous.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“In a month during which virus containment measures were tightened in the face of further waves of infections, the eurozone economy showed encouraging strength.”

“Although the service sector continued to be hard hit by lockdown measures, it has returned to growth as companies adjust to life with the virus and prepare for better times ahead.”

FX implications

The shared currency extends gains against the US dollar after strong Eurozone PMI readings.

The spot trades at daily highs of 1.2057, 0.35% stronger on the day, as of writing.

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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