Eurozone Private Sector PMIs Send the EUR into the Red
Following manufacturing PMI numbers on Monday, service sector and composite PMIs were in focus this morning
Member States
In July, Spain’s services PMI decreased from 62.5 to 61.9, while Italy’s services PMI rose from 56.7 to 58.0. Economists had forecast PMIs of 62.9 and 58.0 respectively.
France’s services PMI fell from 57.8 to 56.8, which was down from a prelim 57.0.
Germany’s services PMI increased from 57.5 to 61.8, which was down from a prelim 62.2.
The Eurozone
In July, the services PMI increased from 58.3 to 59.8 which was down from a prelim 60.4. As a result, the Composite PMI rose from 59.5 to 60.2, down marginally from a prelim 60.6.
According to the finalized survey,
Eurozone business activity rose at its fastest rate in just over 15-years.
Steep manufacturing output growth complemented a marked pickup in service sector activity.
Service sector activity increased at its fastest pace since mid-2006.
European economic powerhouse, Germany, saw the rate of expansion accelerate to a record high.
While France and Spain registered softer increases in output, Italy’s private sector saw activity growth hit a 3-and-a-half year high.
Demand for euro area goods and services rose at the quickest pace since May-2000.
Orders from both, within the euro bloc, and from international markets were on the rise, though foreign orders rose at a marginally weaker pace than in June.
Employment rose at the fastest pace in almost 21-years. Only France and Spain saw the rate of job creation ease.
Input prices rose at the strongest pace since September-2000 but only marginally quicker than in June.
Output charge inflation was unchanged from the previous month.
Optimism across the private sector fell back to a four-month low.
Market Impact
In response to today’s stats, the EUR rose to a post-stat high $1.18785 before falling to a post-stat and current day low $1.18523.
At the time of writing, the EUR was down by 0.09% to $1.18537.
Next Up
Eurozone retail sales ahead of ADP nonfarm employment change and ISM Non-Manufacturing PMI numbers from the U.S.
This article was originally posted on FX Empire
