• German Manufacturing PMI arrives at 47.4 in December vs. 46.3 expected.
• Services PMI in Germany jumps to 49.0 in December vs. 46.3 expected.
• EUR/USD remains unfazed at around 1.0635 on upbeat German PMIs.

The German manufacturing and services sectors’ activtiy downturn eased further in December as price pressures continue to cool down, the preliminary manufacturing activity report from S&P Global/BME research showed this Friday.

The Manufacturing PMI in Eurozone’s economic powerhouse came in at 47.4 this month vs. 46.3 expected and 46.2 prior. The index jumped to two-month highs.

Meanwhile, Services PMI jumped from 46.1 in November to 49.0 in December as against the 46.3 estimated. The PMI hit the lowest level in two months.

The S&P Global/BME Preliminary Germany Composite Output Index arrived at 48.9 in December vs. 46.5 expected and November’s 46.3. The gauge reached a three-month peak.

Key comments from Phil Smith, Economics Associate Director at S&P Global

“The latest flash PMI survey paints a somewhat less gloomy picture of Germany’s economy as we head towards the end of the year.”

“Although still in contraction territory, the headline index pointed to a shallower downturn in overall business activity in December, as the declines in both manufacturing and services eased.”

FX implications

EUR/USD is keeping its range play intact around 1.0635 on the upbeat German data. The spot is trading 0.14% higher on the day.