Prelim Private Sector PMIs for August Deliver EUR Support

It was a busier economic calendar through the European session, with private sector PMIs in focus.

According to prelim figures for August, Germany’s manufacturing PMI fell from 65.9 to 62.7. Economists had forecast a decline to 65.0. The services PMI slipped from 61.8 to 61.5 versus a forecasted 61.0.

For France, the manufacturing PMI fell from 58.0 to 57.3, which was in line with forecasts. The Services PMI fell from 56.8 to 56.4. Economists had forecast an increase to 57.0.

The Eurozone’s Manufacturing PMI fell from 62.8 to 61.5, with the Services PMI falling from 59.8 to 59.7. Economists had forecast PMIs of 62.0 and 59.8 respectively. As a result, the Composite PMI fell from 60.2 to 59.5 versus a forecasted 59.7.

According to the Eurozone’s prelim survey,

• Eurozone business activity continued to grow at a fast pace in August.
• The rate of expansion cooled only slightly despite supply chain delays.
• Growth sector growth exceeded that of the manufacturing sector for the first time since the pandemic.
• Firms’ costs and prices charged rose at some of the fastest rates seen over the past 20-years.
• Business confidence was subdued as a result of the Delta variant.
• In spite of softer confidence, hiring remained the strongest for 21-years.
• Inflows of new orders were amongst the highest seen in the past two decades.
• Within the Eurozone, Germany continued to lead the expansion. This was in spite of growth softening from July’s 23-year record high.

Market Impact

Ahead of today’s trade data, the EUR had fallen to a pre-stat and current day low $1.16931 before rising to a pre-stat high $1.17239.

In response to today’s stats, the EUR fell to a low $1.17063 before climbing to a current day high $1.17262.

At the time of writing, the EUR was up by 0.19% to $1.17230.

Next Up

Eurozone consumer confidence and U.S private sector PMIs for August. Expect any FOMC member chatter to also draw plenty of interest, however.