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Euro Area manufacturing downturn continues in September

Euro Area’s Manufacturing Purchasing Managers’ Index (PMI) was confirmed at a reading of 43.4 in September, data by Markit Economics showed on Monday, slightly lower than August’s level of 43.5.

The figure pointed to a 15th straight month of contraction in the region’s manufacturing sector. New order inflows decreased at one of the sharpest rates observed in the survey’s 26-year history.

In addition, the rate of depletion in backlogs of work has been the joint-fastest since May 2020, according to Markit, while employment levels across the sector fell the most in nearly 3 years.

Input costs continued to plummet, while prices charged dropped for a 5th successive month, Markit reported.

Meanwhile, Germany’s Manufacturing PMI came in at a final 39.6 in September, down from a preliminary reading of 39.8. It still indicated a 15th consecutive month of manufacturing activity contraction.

Output dropped at the steepest rate in nearly 3 1/2 years amid a sharp slump in new orders, data showed.

The Euro was last losing 0.11% on the day against the US Dollar, with the EUR/USD currency pair trading at 1.0562. Last Friday, the major Forex pair rose as high as 1.0617, or its strongest level since September 25th.

Up next, in terms of macro data, is the Euro Area unemployment report due out at 9:00 GMT.

The seasonally adjusted unemployment rate in the Euro Area probably remained steady at a record low of 6.4% in August, according to market consensus. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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