The euro strengthened yesterday after a series of positive PMI data. Composite PMI was expected to fall into contraction territory in September but stayed in growth territory. This suggests that the effect of rising infection rates and restrictions wasn’t as bad as predicted.
Despite this, the services PMI figure came in at 48, signalling contraction. Germany was the only economy to register growth in the service sector. However, business confidence strengthened for the next 12 months.
This morning, factory orders figures for Germany show that new manufacturing orders increased 4.5% month-over-month in August, coming in better than expected.
