Eurozone Preliminary Manufacturing PMI misses estimates with 61.5 in August

Eurozone Manufacturing PMI arrives at 61.5 in August vs. 62.0 expected.
Bloc’s Services PMI drops to 59.7 in August vs. 59.8 expected.

Dhwani Mehta FXStreet

The Eurozone manufacturing sector activity expanded but at a weaker pace in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Monday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 61.5 in August vs. 62.0 expectations and 62.8 last. The index was at its weakest in six months.

The bloc’s Services PMI fell to two-month lows of 59.7 in August vs. 59.8 expected and 59.8 previous.

The IHS Markit Eurozone PMI Composite fell to 59.5 in August vs. 59.7 expected and 60.2 previous. The gauge clinched two-month lows.

Comments from Chris Williamson, Chief Business Economist at IHS Markit

“The eurozone’s economic recovery retained impressive momentum in August, with the PMI dipping only slightly from July’s recent high to put its average in the third quarter so far at the highest for 21 years.“

“Although the spread of the Delta variant caused widespread problems across the region, curbing demand and causing further supply issues, firms benefited from virus containment measures easing to the lowest since the pandemic began.”

FX implications

EUR/USD shrugs off discouraging German and Eurozone Business PMIs, as it continues to find support from the US dollar’s weakness.

The spot currently trades at 1.1723, up 0.23% on the day, having bounced off a dip to 1.1707 session lows.

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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