- German manufacturing PMI falls to 54.1 in April vs. 54.5 expected.
- Services PMI in Germany jumps to 57.9 points in April vs. 55.5 expected.
- EUR/USD remains near lows just above 1.0800 after German PMI mixed.
The German manufacturing sector slowed its rate of expansion in April, but the services sector held firmas shown this Friday by the preliminary report on manufacturing activity from the S&P Global/BME.
The manufacturing PMI of the eurozone economic powerhouse stood at 54.1 points this month vs. 54.5 expected and falling from 56.9 the previous month. Index hit 20-month low.
In the meantime, services PMI jumped from 56.1 points to 57.9 in April, above the estimated 55.5. The PMI registers the highest level in eight months.
The preliminary S&P Global/BME Composite Index for Germany fell to 54.5 points in April from 55.1 seen in March but above the 54.1 expected. The indicator hit three-month lows.
Key comments from Phil Smith, Head of Economics at S&P Global
“We are seeing a growing divergence in performance between Germany’s manufacturing and service sectors“.
“While service sector activity continues to gain momentum on the back of the easing of COVID restrictions and the subsequent release of pent-up demand, manufacturing output has contracted amid a combination of renewed supply disruption and cooling prices. the demand for goods”.
Implications for currencies
EUR/USD remains in lower ground just above the 1.0800 level, shedding 0.19% on the day. The pair remains weighed down by resurgent US dollar demand and mixed German data.
Source: Fx Street
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