Eurozone PMI and Manufacturing Output Rebound, Currency Rates Uptick
On February 21, 2023, the S&P Global Flash Eurozone PMI Composite Output Index rose to a nine-month high of 52.3 in February, up from 50.3 in January and beating the 50.5 consensus forecast by economists in a poll from The Wall Street Journal. The survey also revealed that the bloc’s services PMI read at 53.0 in February vs. 51.0 estimates and January’s 50.8, hitting an eight-month high.
Meanwhile, the S&P Global Flash Germany PMI Composite Output Index registered 51.1 in February, up from 49.9 in January. For the first time in eight months, the index rose above the 50.0 mark, a point which marks economic growth versus contraction, albeit at a slow rate. Data from beneath the surface revealed slight upticks in activity in both the manufacturing and service industries. Production levels increased for the first time in nine months, as reports of better material availability spread throughout the industry.
In the Eurozone, the manufacturing PMI came in at 48.5 vs. 49.3 expected, while the services PMI read at 53.3, surpassing expectations for 49.2 and January's 48.7. Germany’s composite PMI climbed to 51.1 in February, from 49.9 the previous month, although its vital manufacturing sector PMI fell to 46.5, suggesting it was contracting, dragging the Eurozone’s manufacturing sector down to 48.5 as a whole.
In the UK, the Flash Services PMI increased to 53.3 in February, up from 49.2 expected and 48.7 the previous month. The index hit the highest level in eight months. Meanwhile, in the Asia-Pacific region, the S&P Global Flash Composite Output Index rose from 50.3 in January to 52.3 in February, a nine-month high and beating the 50.5 consensus forecast by economists in a poll.
In terms of currency, the USD/AUD, USD/INR, USD/JPY, and USD/GBP all saw a slight uptick.
The improvement in the services activity and the return of manufacturing output to the growth territory amid fading supply-side problems pushed the S&P Global Eurozone Composite PMI higher.
0. “Germany PMI composite rose to 561.1, return to growth after eight months” Action Forex, 21 Feb. 2023, https://www.actionforex.com/live-comments/487413-germany-pmi-composite-rose-to-561-1-return-to-growth-after-eight-months
1. “German business activity returns to growth, buoyed in part by rapidly easing supply bottlenecks” Forex Factory, 21 Feb. 2023, https://www.forexfactory.com/news/1206792-german-business-activity-returns-to-growth-buoyed-in
2. “European stocks slip after disappointing Eurozone manufacturing PMI data By Investing.com” Investing.com, 21 Feb. 2023, https://www.investing.com/news/stock-market-news/european-stocks-slip-after-disappointing-eurozone-manufacturing-pmi-data-3008613
3. “Eurozone February flash services PMI 53.0 vs 51.0 expected” ForexLive, 21 Feb. 2023, https://www.forexlive.com/news/eurozone-february-flash-services-pmi-530-vs-510-expected-20230221
4. “German Preliminary Manufacturing PMI unexpectedly declines to 46.5 in February” FXStreet, 21 Feb. 2023, https://www.fxstreet.com/news/german-preliminary-manufacturing-pmi-unexpectedly-declines-to-465-in-february-202302210831
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