The Manufacturing Purchasing Managers Index (PMI) released by the Markit economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
It's a leading indicator of economic health - businesses react quickly to market conditions
What are the Expectations for Germany’s Markit Manufacturing PMI?
The Markit Manufacturing PMI is expected to be 66.0. That is slightly below what was reported in March and April. The manufacturing PMI reported in those months were 66.6 and 66.4 respectively. Are we starting to see a slowdown in the recovery?
German factories continued to churn out goods at a near-record pace in April while activity in the services sector remained sluggish due to coronavirus curbs.
Companies hired new staff at a pace not seen since October 2018 and their backlogs of work increased to the highest level in more than 10 years.
What happens if…
A Markit Manufacturing PMI above 50 indicates industry expansion. If the Actual comes out greater than Forecast its good for the currency, in this case the EUR.
What happens if…
A Markit Manufacturing PMI below 50 indicates industry contraction. If the Actual comes out lower than Forecast it will have a bearish impact on the currency, in this case the EUR.
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