Manufacturing Expected to Remain in a Tough Spot in Europe - Forex News by FX Market Leaders

Manufacturing Expected to Remain in a Tough Spot in Europe

Posted Monday, September 2, 2019 by
Skerdian Meta • 1 min read

The European economy is in a really difficult spot right now. The service sector is not as bad, although it has been weakening, but the manufacturing sector and industrial production are in deep contraction, especially in Germany and, as a result, in the Eurozone.

Today is a manufacturing day in Europe, with manufacturing reports to be released from a number of major European countries. Also, manufacturing reports from China and Japan were already released. In Japan manufacturing remained in contraction, while the Chinese Caixin manufacturing improved and climbed above stagnation, which is a positive sign for the global economy . Below is the list and expectations of European manufacturing figures:

 

Economic DataActualExpectedPrevious
Spanish Manufacturing PMI48.648.2
Swiss Manufacturing PMI45.644.7
Italian Manufacturing PMI48.648.5
French Manufacturing PMI51.051.0
German Manufacturing PMI43.643.6
Eurozone Manufacturing PMI47.047.0
UK Manufacturing PMI48.048.0

 

As you can see, only French manufacturing is barely holding up above stagnation, while all other European manufacturing figures show that this sector is in contraction. Expectations for last month aren’t expected to show any change comparing to July. So, everything looks quite gloomy, although let’s hope it doesn’t get worse.

The Euro has been on slippery slope and EUR/USD even broke below 1.10 at the end of last week, so if numbers come as expected, it will confirm the weakness of the European economy and the Euro will remain bearish for the next few sessions.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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