Eurozone PMI beats expectations, but price pressures limit EUR reaction
📊 The Eurozone flash Composite PMI rose to 53.1 in September from 52.0, clearly beating expectations of 51.6–51.7 and reaching its highest level in around 3.5 years. Germany also improved strongly, with its Composite PMI at 53.8 and services returning to expansion after five months of contraction.
📈 New orders across the Eurozone grew at the fastest pace since May 2022, while backlogs increased for the first time since mid-2022. S&P Global estimated that the current pace of activity is consistent with Q3 GDP growth of around 0.4%.
⚠️ However, input costs and selling prices rose at their fastest pace since May, showing that stronger growth is also coming with renewed inflation pressure and less room for ECB easing.
💶 The EUR reaction remained limited as markets balanced stronger growth against inflation risks and continued USD strength.
#ForexInsights $NVDAB
📊 The Eurozone flash Composite PMI rose to 53.1 in September from 52.0, clearly beating expectations of 51.6–51.7 and reaching its highest level in around 3.5 years. Germany also improved strongly, with its Composite PMI at 53.8 and services returning to expansion after five months of contraction.
📈 New orders across the Eurozone grew at the fastest pace since May 2022, while backlogs increased for the first time since mid-2022. S&P Global estimated that the current pace of activity is consistent with Q3 GDP growth of around 0.4%.
⚠️ However, input costs and selling prices rose at their fastest pace since May, showing that stronger growth is also coming with renewed inflation pressure and less room for ECB easing.
💶 The EUR reaction remained limited as markets balanced stronger growth against inflation risks and continued USD strength.
#ForexInsights $NVDAB
