German Preliminary Manufacturing PMI drops to 44.4 in March vs. 47.0 expected

The German manufacturing sector activity continues to worsen in March despite falling inflationary pressures, the preliminary manufacturing activity report from S&P Global/BME research showed this Friday.

The Manufacturing PMI in Eurozone's economic powerhouse came in at 44.4 this month vs. 47.0 expected and 46.3 prior. The index dropped to a new two-month low.

Meanwhile, Services PMI jumped from 50.9 in February to 53.9 in March as against the 51.0 consensus forecast. The PMI reached ten-month highs.

The S&P Global/BME Preliminary Germany Composite Output Index arrived at 52.6 in March vs. 51.0 expected and February's 50.7. The gauge recorded its highest level in ten months.

Key comments from Phil Smith, Economics Associate Director at S&P Global

"The German economy took another small step in the right direction in March, according to latest flash PMI data."

"Business activity increased for a second straight month and the rate of growth picked up, although it remained only modest overall due to continued weakness in manufacturing."

FX implications

EUR/USD is keeping its downside momentum intact at around 1.0785 on the mixed German data. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.