German Preliminary Manufacturing PMI rises to 66.4 in April vs. 65.8 expected, EUR/USD unfazed

The German manufacturing sector continued to improve in April, the preliminary manufacturing activity report from IHS/Markit research showed this Frid  |  23/04/2021 07:32
  • German Manufacturing PMI arrives at 66.4 in Apr vs. 65.8 expected.
  • Services PMI in Germany expands to 50.1 in Apr vs. 50.8 expected.
  • EUR/USD remains firmer but below 1.2050 on mixed German PMIs.

The German manufacturing sector continued to improve in April, the preliminary manufacturing activity report from IHS/Markit research showed this Friday.

The Manufacturing PMI in Eurozone’s economic powerhouse came in at 66.4 this month vs. 65.8 expected and 66.6 prior. The index eased from record highs to hit two-month lows.

Meanwhile, Services PMI unexpectedly expanded to 50.1 in March as against the previous month’s reading of 51.5 and 50.8. anticipated. The index also fell to two-month lows.

The IHS Markit Flash Germany Composite Output Index dipped to the lowest in two months, arriving at 56.0 in April vs. 56.8 expected and March’s 57.3.

Key comments from Phil Smith, Principal Economist at IHS Markit

“The third wave of the pandemic has stifled progress in Germany’s service sector, with April’s flash PMI data showing activity close to stalling following the return to growth at the end of the first quarter. The country’s manufacturing sector remains on a strong footing, though even here the data show growth being held back by supply problems.”

“The imbalance of demand and supply across manufacturing supply chains continues to drive up businesses’ costs, which are now rising at the fastest rate for more than a decade.”

FX implications

EUR/USD is on a gradual rise towards the 100-DMA at 1.2055 after mixed German Manufacturing and Services PMIs.

The spot was last seen trading at 1.2049, up 0.31% on the day.

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