Eurozone Preliminary Services PMI contracts to 48.3 in August vs. 50.5 expected

Eurozone Manufacturing PMI improves to 43.7 in August, beating estimates of 42.6.
Bloc’s Services PMI drops to 48.3 in August vs. 50.5 anticipated.
EUR/USD keeps losses below 1.0850 after disappointing German and Eurozone Services PMIs.

Dhwani Mehta FXStreet

The Eurozone manufacturing sector contraction slowed down but the services sector saw a downturn in August, the latest data from HCOB's latest purchasing managers index survey showed Wednesday.

The Eurozone Manufacturing Purchasing Managers Index (PMI) rose to 43.7 in August when compared to the market forecasts of 42.6 and above the 42.7 seen in July. The index hit a three-month peak.

The bloc’s Services PMI tumbled to 48.3 in August from 50.9 seen in July, reaching a 30-month low, arriving way below the 50.5 estimates.

The HCOB Eurozone PMI Composite dropped to 47.0 in August vs. 48.5 expected and 48.6 booked in July. The index reached its lowest level in 33 months.

FX implications

EUR/USD is consolidating losses below 1.0850 after dismal Eurozone PMIs. The spot is down 0.17% on the day, trading at 1.0825, 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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