Germany: Manufacturing PMI disappoints with a fall to 42.3 in the preliminary reading for February, its lowest level in four months

• The manufacturing PMI falls to 42.3 in February compared to the 46.1 points expected.
• The services PMI improves but remains in contraction territory for the fifth consecutive month.
• The Euro retreats from three-week highs after the data, but maintains strong gains.

The index Germany Manufacturing PMI published by S&P Global has fallen to 42.3 points in February's preliminary reading after rising to 45.5 in January. The figure disappoints market expectations, which forecast an increase to 46.1. This is the worst result recorded by the indicator in four months.

He Services PMIhowever, has risen to 48.2 from 47.7, improving the 48 expected. Despite the improvement, the indicator remains in contraction territory for the fifth consecutive month.

Finally, the composite PMI has fallen to 46.1 from 47.0, worsening the 47.5 points estimated by experts.

Euro reaction

EUR/USD hit its highest level in three weeks at 1.0888 just before the data. After the publication, the pair fell towards the 1.0858 area, although it now maintains gains on the day of 0.48%, trading at the time of writing above 1.0869.