Home Forex Germany’s preliminary manufacturing PMI fell to 48.3 in September, versus 48.3 expected

Germany’s preliminary manufacturing PMI fell to 48.3 in September, versus 48.3 expected

by SuperiorInvest
  • German manufacturing PMI reached 48.3 in September vs. expected 48.3.
  • The services PMI in Germany fell further to 45.4 in September, against an expected 47.2.
  • EUR/USD accelerates declines towards 0.9750 on mixed German PMIs.

Contractions in Germany’s manufacturing and services sectors deepened in September as rising energy costs weighed, a preliminary manufacturing activity report from S&P Global/BME research showed on Friday.

The Manufacturing PMI in the economic powerhouse of the eurozone this month it reached 48.3 vs. expected 48.3 and 49.1 before. The index fell to 27-month lows.

Meanwhile, the services PMI fell from a previously posted 47.7 to 45.4 in September versus an estimate of 47.2. PMI hit 28-month low.

Germany’s preliminary S&P Global/BME composite output index came in at 45.9 in September, versus an expected 46.0 and August’s 46.9. The gauge also hit 28-month lows.

Key comments from Phil Smith, Chief Economic Officer, S&P Global

“German economy looks set to contract in Q3, with PMI showing looming decline in September and survey outlook indicators are also deteriorating, the outlook for the fourth quarter does not look good either.”

“The deepening decline in business activity in September was led by the services sector, which saw a sharp drop in demand as customers cut back on spending due to tightening budgets and increased uncertainty about the outlook.”

FX implications

EUR/USD accelerates decline after breaking mixed German data at 0.9800. Spot last traded at 0.9770, still down 0.60% on the day.

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