German preliminary manufacturing PMI falls to 40.3 in September versus 42.4 expected

• German manufacturing PMI fell to 40.3 in September from 42.4 forecast.
• The services PMI for the German economy fell to 50.6 in September from an expected 51.0.
• EUR/USD attacks 1.1100 after bearish German PMI.

The slump in Germany’s manufacturing sector worsened in September, while activity in the service sector was also hit, the preliminary business activity report released by the HCOB survey showed on Monday.

The HCOB manufacturing PMI in the eurozone’s largest economy fell to 40.3 this month from 42.4 in August, missing estimates of 42.4. The measure hit an annual low.

Meanwhile, Services PMI fell from 51.2 in August to 50.6 in September, below the market forecast for a print of 51.0 in the reported period. The indicator hit a six-month trough.

The preliminary German HCOB manufacturing index came in at 47.2 in September versus an expected 48.2 and 48.4 in August. The index was the weakest in seven months.

FX implications

EUR/USD falls further on disappointing German data, currently trading 0.42% lower on the day at 1.1112.