He German manufacturing PMI released by HCOB fell eight-tenths in Augustsliding to 42.4 from 43.2 in July, its lowest level in five months. The result has disappointed the rise to 52.1 expected by the market. Despite the decline, the indicator has improved market expectations, as a decline to 42.1 was expected. In any case, the German manufacturing sector has remained in contraction territory since June 2022.
According to the HCOB statement, new orders fell at their fastest pace in nine months. Employment in the sector and purchasing activity also declined.
In the Eurozone, the manufacturing PMI remained unchanged at 45.8 points.improving the estimated decline to 45.6. It is worth noting that in the region, prices of goods are rising for the first time since April 2023 despite the accelerated fall in new orders.
Euro reaction
The Euro has rebounded on improved manufacturing expectations in the Eurozone and Germany, and has risen against the Dollar to 1.1077, a new high for the day. At the time of writing, EUR/USD is trading at 1.1065, gaining 0.16% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
