Euro dips as euro area business activity contracts in September

Euro dips as euro area business activity contracts in September

23 September 2015, 10:29
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On Wednesday the shared currency was lower after flash data showed that manufacturing and services output fell below expectations in September.

EUR/USD was last at 1.1124, lower 0.04%, while EUR/GBP was higher 0.05%, at 0.7244.

Earlier, Markit data showed that the composite purchasing manager's index (PMI) came in at 53.9, down from 54.3 in August and below expectations for a reading of 54.1 from analysts polled by Reuters.

However, in terms of quarterly growth, Markit said the survey data pointed to "steady growth of the euro zone economy at the end of the third quarter."

"Moreover, faster growth of new work and backlogs of orders point to continued expansion in coming months. Selling prices were meanwhile stable despite sharply reduced commodity prices," it said.

Chris Williamson, Markit's chief economist, made remarks on the data, saying there were still concerns over a lack of job creation.

"The September PMI surveys indicate a further steady expansion of the euro zone economy, but there remains a worrying failure of growth to accelerate to a pace sufficient to generate either higher inflation or strong job creation."

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