Market News

Economic Worries Grow as German PMI Hits New Low

German PMI new low

German PMI hits a new low, EU PMI is mixed, and France impresses. Markets await ECB minutes for economic insights.

In a week marked by economic scrutiny and cautious optimism, Germany’s latest Purchasing Managers’ Index (PMI) data has sparked concerns. At the same time, the broader European Union (EU) PMI figures present a mixed picture.

German PMI Contracts Sharply in February

Amidst growing concerns over Germany’s economic health, February’s flash manufacturing PMI data plummeted to 42.3, down from 45.5, marking a significant deviation from the anticipated 46.1. This decline dashes hopes of a sustained recovery in the manufacturing sector, which had shown signs of improvement following a dip below 40 in July 2023.

Moreover, forward-looking indicators such as ‘new business’ and ‘new orders’ witnessed further deterioration, compounded by a decline in new export business. Surveyed firms cited customer reluctance to engage in transactions amidst ongoing economic uncertainty and challenging financial conditions.

While the services sector managed a modest uptick during the same period, there’s little evidence of cost pressures stemming from recent geopolitical tensions affecting shipping routes.

Economic Worries Grow as German PMI Hits New Low

EU PMI Data Mixed

While German PMI data paints a gloomy picture, the EU PMI figures offer a more nuanced perspective. Despite a slight dip in manufacturing, the composite reading surpassed expectations, buoyed by a notable improvement in the services sector, which reached the pivotal 50-mark, indicating a shift from contraction to expansion.

France, in particular, demonstrated resilience, with all three measures improving, notably in manufacturing, which rose from 43.1 to 46.8.

The market response to the euro was varied, with the currency experiencing gains against the US dollar and Japanese yen but facing downward pressure against the British pound ahead of the UK PMI data release.

Investors will closely monitor the European Central Bank (ECB) minutes from the January meeting for insights into policymakers’ views on the economic landscape and potential policy responses.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing...

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global...

Asia Watch: Dollar Rally, Geopolitical Tensions Impact Trading Sentiment

Amid lower US unemployment claims, the dollar surged while escalating geopolitical tensions...

Market Focus: Europe and Asia React to Economic Data

In Asia, the Australian labor report weakened the AUD; USD awaits US...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Gold Near New High
Market News

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing an all-time high, while FX markets reflected immediate safety concerns.

Global markets CPI geopolitical tensions
Market News

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global markets amid rising geopolitical tensions and central bank actions.

Copyright © 2023 Forex Prop News. All Rights Reserved.