September Service Sector and Composite PMIs Deliver Modest EUR Support

It’s been a busy start to the day on the Eurozone economic calendar.

Key stats included service sector PMIs for Italy and Spain and finalized PMIs for France, Germany, and the Eurozone.

Member Stats

Italy’s Services PMI fell from 58.0 to 55.5 versus a forecasted 56.5, with Spain’s down from 60.1 to 56.9. Economists had forecast a PMI of 58.0.

Finalized numbers from France and Germany also disappointed.

The French Services PMI slipped from 56.3 to 56.2, which was up from a prelim 56.0.

Germany’s Services PMI slid from 60.8 to 56.2 in September, which was up from a prelim 56.0.

The Eurozone

As a result of the better numbers from France and Germany, the Eurozone’s Services PMI fell from 59.0 to 56.4 which was up from a prelim 56.3.

In September, the Composite PMI declined from 59.0 to 56.2, which was up from a prelim 56.1.

Key takeaways from the finalized Markit Survey:

  • Euro area economic growth moderated for a 2nd consecutive month.
  • There were softer rates of expansion in both new orders and employment.
  • Businesses’ output expectations were the least optimistic since February.
  • Significantly, inflationary trends moved higher, with input prices rising at the joint fastest pace on record.
  • Output prices rose at a pace which was only surpassed by those seen in June and July.


  • Ireland ranked top, with a 5-month low composite of 61.5 followed by Spain (57.0).
  • Italy came in 3rd, with a 4-month low 56.6.
  • Germany ranked 4th, with a 7-month low 55.5 followed by France that sat at the bottom of the table with a 5-month low composite of 55.3.

Market Impact

Ahead of today’s figures, the EUR had risen to a pre-stat and current day high $1.16223 before falling to a pre-stat and current day low $1.15900.

In response to today’s stats, the EUR rose to a post-stat high $1.16050 before falling to a post-stat low $1.15926.

At the time of writing, the EUR was down by 0.17% to $1.16014.

051021 EURUSD Hourly Chart

Next Up

Trade data, Markit Services and Composite PMIs, and the ISM Non-Manufacturing PMIs from the U.S.

Expect the market’s favored ISM numbers to be key… While the headline figures will influence, the market attention will likely be on key components, these being cost pressures and employment in particular.