- Eurozone Manufacturing PMI arrives at 51.7 in August vs. 52.9 expected.
- The index for the Services sector stood at 50.1 in August vs. 54.5 anticipated.
The latest manufacturing activity survey from IHS/Markit research showed on Friday that the Eurozone manufacturing sector growth lost some momentum in August. The Eurozone Manufacturing purchasing managers index (PMI) edged lower to 51.7 in August from 51.8 in July. Meanwhile, the Services PMI fell to 50.1 in August vs. 54.5 expected and 54.7 previous.
Commenting on the flash PMI data, Andrew Harker, Economics Director at IHS Markit said:
“The eurozone’s rebound lost momentum in August, highlighting the inherent demand weakness caused by the COVID-19 pandemic. The recovery was undermined by signs of rising virus cases in various parts of the euro area, with renewed restrictions impacting the service sector in particular. Manufacturers continued to post marked increases in output and new orders.”
FX implication
This comes on the back of mixed German PMI prints and did little to impress the euro bulls. The EUR/USD pair was seen hovering near the lower end of its daily trading range, around the 1.1835 region.
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