May flash data shows Germany’s manufacturing sector contracts for the first time in three months, offsetting a slower decline in services activity.
Germany’s flash Manufacturing PMI fell to 49.9 in May, missing estimates of 51.0 and signaling contraction after two months of expansion. The decline contrasts with a slight improvement in the broader Composite PMI to 48.6, still below the 50 threshold indicating contraction.
The Services PMI contracted at a slower pace than expected, rising to 47.8 from 46.9 in April, though remaining in negative territory. Analysts had forecast a marginal increase to 47.0. The manufacturing sector’s downturn weighed on overall business activity, keeping the Composite PMI below 50 for the third consecutive month.
EUR/USD showed little reaction to the data, trading 0.2% lower at 1.1600 amid broader USD strength.