October 24, 2024 07:37 GMT
GERMAN DATA: October Flash PMI Above Consensus, But Underlying Conditions Weak
GERMAN DATA
Credit BulletsCommoditiesCEEMEAEurozoneGermanyPower BulletsGlobalData BulletEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange BulletsRegion
In contrast to France, the German flash October PMI was stronger than expected for both services and manufacturing. Euribor futures have moved away from post-French data highs, with the implied probability of a 50bp ECB December cut easing a little (though is still ~45%).
However, the composite PMI remained in contractionary territory for the fourth consecutive month at 48.4 (vs 47.6 cons, 47.5 prior).
Key notes from the release:
- “Businesses reported further decreases in output and employment amid a backdrop of weak underlying demand”
- “The decline continued to be led by manufacturing, where there were reports of customers refraining from spending due to heightened economic uncertainty alongside weak demand from the automotive sector”.
- “Another marked round of retrenchment in the manufacturing sector factory was compounded by a slight acceleration in the rate of service sector job losses”.
- “Average prices charged by German businesses were broadly unchanged in October”.
Keep reading...Show less
142 words