German Preliminary Manufacturing PMI rises to 39.8 in September vs. 39.5 expected

• Germany’s Manufacturing PMI improved to 39.8 in September vs. 39.5  expected.
• Services PMI for the German economy recovered to 49.8 in September vs. 47.2 expected.
• EUR/USD keeps losses below 1.0650 despite upbeat German PMIs.

According to the preliminary business activity report from the HCOB survey, published on Friday, Germany’s manufacturing sector is seeing a gradual recovery in September while the services sector downturn eased.

The HCOB Manufacturing PMI in the Eurozone’s biggest economy came in at 39.8 this month, as against the 39.5 expectations and 39.1 print booked in August. The index hit its highest level in three months.

Meanwhile, Services PMI rose from 47.3 in August to 49.8 in September. The market consensus was for a 47.2 reading. The measure reached a fresh two-month high.

The HCOB Preliminary German Composite Output Index arrived at 46.2 in September vs. 44.8 estimates and August’s 44.6. The gauge recorded a two-month top.

FX implications

EUR/USD is keeping its downbeat momentum intact below 1.0650 on the upbeat German data. The pair is trading 0.13% lower at 1.0645, at the time of writing.