- Eurozone Manufacturing PMI arrives at 58.7 in September vs. 60.3 expected.
- Bloc’s Services PMI drops to 56.3 in September vs. 58.5 expected.
The Eurozone manufacturing sector activity deteriorated in the reported month, the latest manufacturing activity survey from IHS/Markit research showed on Thursday.
The Eurozone Manufacturing purchasing managers index (PMI) arrived at 58.7 in September vs. 60.3 expectations and 61.4 last. The index was at its weakest in seven months.
The bloc’s Services PMI fell to four-month lows of 56.3 in September vs. 58.5 expected and 59.0 previous.
The IHS Markit Eurozone PMI Composite fell to 56.1 in September vs. 58.5 estimated and 59.0 previous. The gauge hit five-month lows.
Comments from Chris Williamson, Chief Business Economist at IHS Markit
“September’s flash PMI highlights an unwelcome combination of sharply slower economic growth and steeply rising prices.”
“On one hand, some cooling of growth from the two-decade highs seen earlier in the summer was to be expected. On the other hand, firms have become increasingly frustrated by supply delays, shortages and ever-higher prices for inputs. Businesses, most notably in manufacturing but also now in the service sector, are being constrained as a result, often losing sales and customers.”
FX implications
EUR/USD is unfazed by the poor German and Eurozone Business PMIs, as it continues to find support from the US dollar’s weakness.
The spot currently trades at 1.1715, up 0.26% on the day, although slightly off from the daily highs of 1.1725.
