March Manufacturing Sector PMIs Test EUR Support
It was a busy start to the European session this morning, with manufacturing sector PMIs for Spain and Italy in focus. Finalized PMIs for France, Germany, and the Eurozone also drew attention.
Member State Manufacturing Sector PMIs
In March, Spain’s manufacturing PMI fell from 56.9 to 54.2, with Italy’s PMI down from 58.3 to 55.8. Economists had forecast PMIs of 55.5 and 57.0, respectively.
The French manufacturing PMI fell from 57.2 to 54.7, which was down from a prelim of 54.8. Germany’s PMI declined from 58.4 to 56.9, which was down from a prelim 57.6.
Eurozone’s Manufacturing PMI Hits a 14-month Low
For the Eurozone, the manufacturing PMI fell from 58.2 to a 14-month low of 56.6, which was down from a prelim 57.0.
According to the March survey,
- Geopolitical tension was mentioned as an influencer on demand, while also weighing on business confidence.
- Supply chain pressures intensified as a result of rising COVID-19 cases in China and Russia’s invasion of Ukraine.
- Surging commodity, fuel, and energy costs led to input price inflation hitting a 4-month high.
- To ease margin pressures, manufacturers raised their charges to the greatest extent on record.
- By nation, Ireland ranked first, with a 2-month high of 59.4, closely followed by Austria (59.3).
- The Netherlands ranked third, with a 15-month low of 58.4 followed by Germany which fell to an 18-month low of 56.9.
- Spain sat at the bottom of the table, with a 13-month low of 54.2
Market Impact
Ahead of today’s stats, the EUR struck a pre-stat and current-day high of $1.10762 before sliding to a pre-stat low of $1.10524.
In response to today’s figures, the EUR fell to a post-stat and current-day low of $1.10430 before rising to a post-stat high of $1.10742.
At the time of writing, the EUR was up by 0.06% to $1.0733, with focus shifting to finalized Eurozone inflation figures for March.
Next Up
Finalized Eurozone inflation figures for March are due out shortly. U.S nonfarm payrolls, due out later in the day, will be the key stat of the day, however.
