Germany’s flash Manufacturing PMI unexpectedly drops to 53.8 in September

German flash HCOB Manufacturing PMI has come in lower at 53.8 in September. The data was expected to arrive higher at 54.5 from 54.3 in August. However, the overall business activity remain stronger-than-expected due to robust Services PMI data. The Composite PMI jumps to 53.8 rom the previous reading of 51.8. The Services PMI returns to the positive territory, arriving at 52.9 from 49.7 in August. A figure above 50.0 is considered as expansion in the business activity.

"German businesses reported further signs of resilience in September, with output growth picking up speed, expectations towards the outlook holding steady and employment rising for a second month running, all despite renewed pressure on the inflation front," Phil Smith, Economics Associate Director at S&P Global Market Intelligence said.

Market reaction

The Euro (EUR) remains muted despite strong German Composite PMI data. At press time, EUR/USD is down 0.22% to near 1.1424 due to US Dollar's (USD) outperformance.