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It was a busy morning on the Eurozone economic calendar. Prelim May private sector PMI numbers for France, Germany, and the Eurozone were in focus.

Member States

In January, France’s manufacturing PMI fell from 55.7 to a 7-month low of 54.5, with the services PMI declining from 58.9 to 58.4. Economists had forecast PMIs of 55.0 and 58.6, respectively.

Germany’s manufacturing PMI rose from 54.6 to a 2-month high of 54.7, while the services PMI fell from 57.6 to 56.3. Economists had forecast PMIs of 54.0 and 57.2, respectively.

The Eurozone

According to prelim figures, the Eurozone’s manufacturing PMI slid from 55.5 to an 18-month low of 54.4, with the services PMI declining from 57.7 to 56.3. Economists had forecast PMIs of 54.9 and 57.5, respectively.

As a result, the Composite PMI declined from 55.8 to 54.9 versus a forecasted 55.3.

According to the May prelim survey,

• The services sector led private sector growth, which rose at the second-strongest pace in 8-months.

• Consumer-facing service sector businesses led the way as a result of the reopening of the economy.

• For the manufacturing sector, expansion has been at its weakest in the second quarter since the COVID-19 related shutdowns in Q2 2020.

• Supply shortages constrained factory output, with the war in Ukraine and China lockdown measures further impacting supply chain pressures.

• Manufacturing new orders fell for the first time since June 2020, while service sector firms reported a rise in new business inflows.

• Average prices for goods and services rose sharply.

• Input cost inflation softened for a second consecutive month, though input cost inflation was still the third most marked on record.

• Business optimism about the year ahead weakened modestly.

Market Impact

Ahead of today’s stats, the EUR fell to a pre-stat and current day low of $1.06608 before striking a pre-stat high of $1.07244.

In response to today’s stats, the EUR rose to a post-stat and a current day high of $1.07360 before easing back.

At the time of writing, the EUR was up by 0.20% to $1.07102.

Next Up

Prelim May private sector PMIs for the U.S. We will expect the services PMI to draw the greatest interest as market recessionary fears linger.

This article was originally posted on FX Empire

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