Germany’s Markit Preliminary Manufacturing PMI Index has fallen two tenths in October, standing at 58.2 from 58.4 in September, although it improves the 56.5 points expected by the market. In any case, this is the worst result seen by the indicator in nine months.
The Preliminary PMI for services is down to 52.4 in October from 56.2 the previous month, worsening the 55 predicted by experts and reaching a minimum of six months.
According to IHS Markit, in October the activity growth continues to slow as prices rise.
Phil Smith, associate director of the company, notes: “Preliminary PMI data for October indicate that economic activity in Germany is beginning to stabilize at the beginning of the fourth quarter. The growth has slowed at a modest pace, with supply bottlenecks holding back manufacturing output. The rebound in services activity continues to lose momentum, in part due to supply problems that extend to the sector. “
“It is worrying that the slowdown in growth has coincided with a new acceleration in the rates of increase in the costs of inputs and the prices of the companies’ products. The survey’s price indicators appeared to have peaked in the summer, but recent increases in energy and fuel prices have helped stoke inflationary pressures, with companies raising fees to cover higher costs. reaching record numbers in October, “he added.
EUR / USD reaction
The EUR / USD has reacted to the data with a rise of several pips that has taken it to new highs for the day at 1.1646. At time of writing, the pair is trading above 1.1645, gaining 0.19% daily.