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German Preliminary Manufacturing PMI declines to 41.0 in June vs. 43.5 expected

  • German Manufacturing PMI arrives at 41.0 in June vs. 43.5 expected.
  • Services PMI in Germany drops to 54.1 in June vs. 56.2 expected.
  • EUR/USD extends losses below 1.0900 on awful German PMIs.

The German manufacturing sector contraction worsened in June while the services sector slowed its pace of expansion, the preliminary business activity report from the HCOB survey showed this Friday.

The Manufacturing PMI in Eurozone’s economic powerhouse came in at 41.0 this month, compared with 43.5 expected and 43.2 previous figure. The index hit a 37-month low.

Meanwhile, Services PMI dropped sharply from 57.2 in May to 54.1 in June as against the 56.2 reading expected. The PMI reached its lowest level in three months.

The HCOB Preliminary Germany Composite Output Index arrived at 50.8 in June vs. 53.5 expected and May’s 53.9. The gauge recorded a four-month low.

FX implications

EUR/USD is extending losses below 1.0900 on the downbeat German data. The pair is trading 0.81% lower at 1.0865, at the time of writing.

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