Private Sector PMIs Fail to Deliver a EUR Boost
The Eurozone Composite PMI hits a 252-month high in July. It wasn’t good enough for the EUR, however, which sits back in the red.
Following on from Thursday’s ECB Press Conference, prelim private sector PMIs for July were in focus this morning.
Member States
The French manufacturing PMI fell from 59.0 to 58.1, with the services PMI falling from 57.8 to 57.0.
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Economists had forecast PMIs of 57.9 and 58.7 respectively.
From Germany, the manufacturing PMI rose from 65.1 to 65.6, with the services PMI rising from 57.5 to 62.2.
Economists had forecast PMIs of 63.7 and 59.1 respectively.
The Eurozone
For the Eurozone, the manufacturing PMI fell from 63.4 to 62.6, while the services PMI rose from 58.3 to a 181-month high 60.4.
Economists had forecast PMIs of 62.5 and 59.6 respectively.
According to the prelim Markit Survey,
- The composite PMI rose to a 252-month high in July, according to prelim figures.
- Business activity accelerated for a 4th consecutive month, supported by a continued easing of COVID-19 restrictions.
- Demand was on the rise, with new order growth for the private sector at its fastest since May 2000.
- Firms hired staff for a 6th consecutive month, with the pace of hiring the 2nd steepest since Jan-2018.
- Average selling prices for goods and services rose at a near-term record pace, reflecting supply constraints.
Market Impact
Ahead of today’s inflation figures, the EUR had fallen to a pre-stat low $1.17575 before rising to a pre-stat high $1.17806.
In response to today’s stats, the EUR rose to a post-stat high and current day high $1.17866 before sliding to a post-stat and current day low $1.17545.
At the time of writing, the EUR was down by 0.05% to $1.17651.
Next Up
Prelim private sector PMIs from the U.S. The services PMI will be the key number late in the European session.
