Eurozone Preliminary Manufacturing PMI drops to 48.5 in February vs. 49.3 expected
- Eurozone Manufacturing PMI arrives at 48.5 in February vs. 49.3 expected.
- Bloc’s Services PMI rises to 53.0 in February vs. 51.0 expected.
- EUR/USD extends losses toward 1.0650 on the mixed Eurozone PMIs.
The Eurozone manufacturing sector downturn continued in February, the latest manufacturing activity survey from S&P Global research showed on Tuesday.
The Eurozone Manufacturing Purchasing Managers Index (PMI) arrived at 48.5 in February vs. 49.3 expected and 48.8 previous. The index reached a two-month bottom.
The bloc’s Services PMI stood at 53.0 in February vs. 51.0 estimates and January’s 50.8, hitting an eight-month high.
The S&P Global Eurozone PMI Composite jumped to 52.3 in February vs. 50.6 estimated and 50.3 last. The gauge recorded a new nine-month high.
Comments from Chris Williamson, Chief Business Economist at S&P Global
“Business activity across the eurozone grew much faster than expected in February, with growth hitting a nine-month high thanks to resurgent service sector activity and a recovering manufacturing economy. February’s PMI is broadly consistent with GDP rising at a quarterly rate of just under 0.3%.”
“Growth has been buoyed by rising confidence as recession fears fade and inflation shows signs of peaking, though manufacturing has also benefitted from a major improvement in supplier performance.”
FX implications
EUR/USD remains pressured toward 1.0650 following the release of the Eurozone PMIs. The spot is losing 0.16% 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.
