Germany: Preliminary manufacturing PMI falls again to 41.6 in March versus 43.1 expected

• The German Manufacturing PMI fell to 41.6 in March, versus the estimate of 43.1.
• The services PMI for the German economy rose to 49.8 in March compared to the expected 48.8.
• EUR/USD defends gains above 1.0900 after mixed German data.

The German manufacturing sector experienced a further contraction in March, while the performance of the services sector improved, the preliminary business activity report published by the HCOB survey showed on Thursday. In any case, both the service and manufacturing sectors remain in contraction territory.

He Manufacturing PMI fell to 41.6 in March from 42.5 points in February, obtaining its worst result in five months, as reported by S&P Global. The figure disappoints market expectations, which expected a rise to 43.1.

He Services PMI rose to 49.8 from 48.3, obtaining its best figure in six months and exceeding the 48.8 points estimated by the consensus.

Finally, the composite PMI rose to 47.4 points from 46.3, exceeding the 47 points expected.

Euro reaction

The Euro has fallen after the data, showing a decline in EUR/USD from 1.0911 to 1.0893, a new daily low. At the time of writing, the pair is trading above 1.0896, losing 0.24% on the day.