Preliminary manufacturing PMI falls to eight-month lows at 58.5 in October, but improves forecasts

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The preliminary index of the Euro zone manufacturing PMI fell one tenth in October to 58.5 from 58.6 in September, improving the 57 points forecast despite setting its lowest level in eight months.

The preliminary services PMI fell to 54.7 from 56.4 the previous month, its lowest in six months. The result worsens the 55.5 points expected by the market.

According to IHS Markit, supply bottlenecks slow economic growth to a six-month low in October, while pushing prices higher at a record pace.

Chris Williamson, IHS Markit chief business economist, notes: “A sharp slowdown in October means the eurozone enters the fourth quarter with the weakest growth momentum since April. A manufacturing sector beset by supply chain delays saw production growth fall to the lowest level since the first lockdowns last year. In the meantime, the service sector has seen part of the summer rebound disappear just as the resurgence in the number of virus cases raises new concernsespecially in Germany. These concerns have once again affected the travel, tourism and recreation sectors for the individual consumer. “

EUR / USD reaction

EUR / USD reached day highs at 1.1646 following German PMI data, but has not continued its momentum after Europeans. At time of writing, the pair remains positive on the day, trading above 1.1643, gaining 0.17% daily.

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