BREAKING: Eurozone shows decent PMI for services, but the manufacturing sector is still lagging 📌

08:15 AM GMT, France - PMI Data for March:

• HCOB France Services PMI: actual 47.8; forecast 48.8; previous 48.4;
• HCOB France Manufacturing PMI: actual 45.8; forecast 47.5; previous 47.1;

08:30 AM GMT, Germany - PMI Data for March:

• HCOB Germany Services PMI: actual 49.8; forecast 48.8; previous 48.3;
• HCOB Germany Manufacturing PMI: actual 41.6; forecast 43.1; previous 42.5;

09:00 AM GMT, Euro Zone - PMI Data for March:

• HCOB Eurozone Services PMI: actual 51.1; forecast 50.5; previous 50.2;
• HCOB Eurozone Manufacturing PMI: actual 45.7; forecast 47.0; previous 46.5;

In the Eurozone, there's a clear divergence in economic performance, with services improving but manufacturing lagging and stuck in recession. The overall economy, however, is moving closer to stabilization at the end of Q1. The manufacturing sector's weakness is primarily attributed to Germany, a major contributor, where output and new orders continue to fall.

• Germany shows a contrasting picture: its manufacturing sector is experiencing a severe contraction, while the services sector is relatively stable but weak. This situation brings Germany close to a technical recession, with the manufacturing sector shrinking by 1.7% in Q1 and services stagnating, resulting in a GDP contraction of -0.3%.
• In France, both manufacturing and services are weak, keeping the economy in contraction territory for Q1. Despite the slower demand, there's some optimism due to easing price pressures and expectations of an economic recovery later in the year.

EURUSD is experiencing a sharp decline today, but the drop is more a result of the dollar strengthening rather than the euro weakening.

Source: xStation 5