Manufacturing PMI and Unemployment Figures Fail to Deliver EUR Support

It was a busy economic calendar this morning. Following Tankan survey numbers from Japan and manufacturing PMI numbers from China, manufacturing PMI and unemployment figures from the Eurozone and member states were in focus.

The Member States

Spain’s manufacturing PMI rose from 59.4 to 60.4, while Italy’s manufacturing PMI slipped from 62.3 to 62.2 in June.

Economists had forecast PMIs of 58.6 and 61.5 respectively.

For Germany, the manufacturing PMI increased from 64.4 to 65.1, which was down from a prelim 64.9.

The French manufacturing PMI fell from 59.4 to 59.0, which was up from June’s prelim 58.6.

The Eurozone

In June, the Eurozone’s manufacturing PMI increased from 63.1 to a record high 63.4, which was also up from a flash 63.1.

According to the June Survey,

• Production increased sharply, with jobs growth hitting a survey peak in June.
• Investment goods producers recorded the strongest growth, followed by intermediate goods producers.
• While consumer goods producers continued to lag, growth was the most marked since Jun-2020.

By country, the Netherlands led the way in spite of a 2-month low PMI of 68.8. By contrast, Greece sat at the bottom of the table despite a 254-month high PMI of 58.6.

Germany ranked 3^rd, with a 2-month high PMI of 65.1, with a 2-month low PMI of 62.2 leaving Italy in 5^th spot.

Eurozone Unemployment

In May, the Eurozone’s unemployment rate fell from 8.1% to 7.9%, which was in line with forecasts.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.18604 before falling to a pre-stat and current day low $1.18375.

In response to today’s stats, the EUR rose to a post-stat high $1.18594 before falling to a post stat low $1.18385.

At the time of writing, the EUR was down by 0.05% to $1.18521.

Next Up

ISM Manufacturing PMI and jobless claims figures from the U.S.