- German Manufacturing PMI arrives at 58.5 in September vs. 61.5 expected.
- Services PMI in Germany eases to 56.0 in September vs. 60.2 expected.
- EUR/USD drops from highs on German PMIs big miss.
The German manufacturing sector sharply slows its pace of expansion in September, the preliminary manufacturing activity report from IHS/Markit research showed this Thursday.
The Manufacturing PMI in Eurozone’s no.1 economy came in at 58.5 this month vs. 61.5 expected and 62.6 prior. The index hit eight-month lows.
Meanwhile, Services PMI dropped to four-month lows of 56.0 in September as against 60.2 estimated and 60.8 previous.
The IHS Markit Flash Germany Composite Output Index arrived at 53.3 in September vs. 62.2 expected and August’s 60.0. The gauge reached the lowest levels in seven months.
Key comments from Phil Smith, Principal Economist at IHS Markit
“September’s flash PMI survey showed a notable slowdown in the rate of growth of the German economy, in a sign that activity is beginning to level off after rebounding sharply over the summer.”
“However, despite the slowdown in September, the pace of economic growth in the third quarter still looks to have surpassed the 1.6% expansion seen in the three months to June.”
FX implications
EUR/USD retreats from daily highs of 1.1725 on downbeat German Preliminary PMIs, now trading at 1.1711, up 0.23% on the day.
