Eurozone PMI Drops in September Barely Above Expansion

Markit’s final Manufacturing Purchasing Managers’ Index (PMI) for the euro zone fell to 50.3 in September from August’s 50.7 and lower than earlier estimates of 50.5.

The figure marks a 14-month low for the region, as input costs and selling prices were both lower than in previous months.

“September’s euro zone PMI makes for gloomy reading. The euro area’s manufacturing economy has lost the growth momentum seen earlier in the year, lurching closer to stagnation,” said chief economist at Markit, Chris Williamson.

“The near-term outlook also looks worrying. Order books are now deteriorating for the first time since June of last year, suggesting output could start to fall as we move into the final quarter of the year,” he said.

Along with Germany, Greece’s factory activity contracted at the fastest rate in almost a year with Markit’s PMI reading for the country coming in at 48.4, down from 50.1 in August.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza