He Eurozone Purchasing Managers’ Index (PMI) fell one tenth in September, standing at 43.4 compared to 43.5 in August, meeting expectations, according to the S&P Global report. This is the fifteenth consecutive month in which the indicator remains in contraction territory.
According to the report, the eurozone manufacturing sector remains mired in a deep recession as factory orders plummet and job losses accelerate.
Germany’s PMI has risen five tenths, from 39.1 to 39.6, its best figure in three months, although it has not reached the consensus forecasts, which estimated an increase to 39.8 points. The German indicator has been below the 50 points that divide contraction from expansion for 15 months.
Germany’s manufacturing sector remained firmly in contraction as the third quarter drew to a close, the latest HCOB PMI® survey by S&P Global showed. Output fell by the most in nearly three-and-a-half years amid a new sharp, though slightly slower, decline in new orders. Goods producers became more pessimistic about the outlook and reduced the number of workers accordingly, although the rate of job losses remained modest.
EUR/USD reaction
After reaching daily highs of 1.0591, the EUR/USD has fallen with weak manufacturing PMI data from Germany and the Eurozone. The pair has retreated to the 1.0560 area, approaching the daily lows. At the time of writing, the Euro is trading against the Dollar at 1.0565, losing 0.08% daily.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
