Euro area final manufacturing PMI index affirms flash estimate, suggests softness in sector

The final manufacturing PMIs for euro area came in comparatively below expectations in August. It added to the evidence of a sector that continues to lose momentum. The headline euro area manufacturing PMI affirmed the flash estimate of 54.6, falling 0.5 points on the month. This is a 21-month low index.

Delving into details, the output index rose slightly to 54.5; however, the average for the initial two months of the third quarter still implied the softest quarter in two years, noted Daiwa Capital Market Research in a report. The euro area’s new orders index, at 53.3, told a similar story, while the new export orders index dropped to the lowest since May 2016, albeit at 51.9 still suggestive of modest growth.

Among other detail at the euro area level, the employment PMI dropped to the lowest in 17 months. The pricing indices implied diminishing pressures, with the output price PMI down 0.2 point to the lowest in 11 months.

Country wise, the German manufacturing PMI index fell 1 point to 55.9, matching the lowest since end-2016, while French manufacturing PMI index rose 0.2 points to 53.5. The French and German PMIs were downwardly revised from the respective flash estimates to be in line with a comparatively moderate rate of growth.

At 11:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 11.772, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 61.0597. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex