The Euro softened against the Pound as Manufacturing PMI data out of France came in weaker than Greece’s and below expectations, creating further doubts over the health of the Eurozone’s second largest economy.
According to Markit’s manufacturing PMI factory output in France fell to 47 in December, a seven month low and below the 50 level that indicates expansion. The fall in new orders was the fastest decline recorded since June 2013. The PMI was the worst recorded since May last year.
“Evidence suggests that lingering uncertainties continue to hold back the spending and investment that are necessary to support a recovery in the sector. Instead most key variables in the latest PMI survey showed deteriorating trends to suggest that no such turnaround is in sight,” said a senior economist at Markit.
The Euro was able to resist making further losses however as the rest of the Eurozone posted a rosier picture.
Greece, Spain, Italy, Ireland and Germany all posted better-than-expected PMI figures, suggesting that a region wide recovery could be sputtering back to life.
“A strengthening upturn in the manufacturing sector is helping the Euro area recovery become firmly established. The latest numbers are consistent with production growing at a quarterly rate of approximately 1% at the end of the year. It’s also encouraging to see prices rising slightly, suggesting firms are seeing some improvement in pricing power.
‘France, however, remains a concern. While Germany, Italy and Spain are seeing the strongest output growth since early-2011, buoyed to varying degrees by improved export sales, France is seeing a steepening downturn, in part the result of widening export losses.
‘This suggests that competitiveness is a key issue which the French manufacturing sector needs to address to catch up with its peers,” said Chris Williamson, the chief economist at Markit.
The wider Eurozone recorded a PMI figure of 52.7, better than the previous month’s figure of 51.6.
Euro (EUR) Exchange Rates
As of 09:30 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3725
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8280
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5445
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6763
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4595
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 144.6184
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2309
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2065
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7286
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6473
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5963
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6851
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8122
