Eurozone Manufacturing Drops in September

Eurozone and UK manufacturing growth slipped back in September, according to the latest purchasing managers surveys.

The Markit/CIPS index for Britain fell from 57.1 in August to 56.7 last month, slightly lower than the expansion to 57.3 economists had been predicting.

In the eurozone, the index came in at 51.1, down from 51.4 in August. Annalisa Piazza at Newedge Strategy said:

This is the first modest decline since April as business confidence has gained some momentum over the summer months and it posted its third consecutive above-50 reading in Sept.
Today’s slight decline should be seen as a sign that the EMU gradual improvement in activity is not gaining much momentum. That said, the above-50 reading is still consistent with a slight pick up in third quarter GDP.
In Germany, the PMI dipped to 51.1 in September from a 25-month high of 51.8 in August.

There were also declines in three of the eurozone’s more troubled countries down to 50.8 from a 27-month high of 51.3 in Italy, and down to 50.7 from 29-month high of 51.1 in Spain.

Greek manufacturing expansion fell to 47.5 from 44-month high of 48.7 but the rate of decline has slowed markedly recently.

Meanwhile, France’s PMI edged up to 49.8 from 49.7 in August.

via The Guardian

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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