German Preliminary Manufacturing PMI jumps to 46.1 in February vs. 45.5 expected

• Germany’s Manufacturing PMI rises to 46.1 in February vs. 45.5 forecast.
• Services PMI for the German economy drops to 52.2 in February vs. 52.5 estimated.
• EUR/USD picks up fresh bids to close in on 1.0500 after upbeat German PMIs.

The German manufacturing sector activity improved more-than-expected while services sector deteriorated slightly in February, the preliminary business activity report published by the HCOB survey showed Friday.

The HCOB Manufacturing PMI in the Eurozone’s top economy rose to 46.1 this month, compared with January’s 45, beating the forecast of 45.5. The measure hit a two-year high.

Meanwhile, Services PMI dropped to 52.2 in February from 52.5 in January. The market estimated a 52.5 print in the reported period. The gauge reached a two-month low.

The HCOB Preliminary German Composite Output Index arrived at 51 in February vs. 50.5 in January and 50.8 estimates. The index was at its highest in nine months.

FX implications

 EUR/USD is off the lows, still down 0.21% on the day to trade near 1.0480 after the upbeat German data.

(This story was corrected on February 21 at 8.45 GMT to say that "Services PMI dropped to 52.2 in February," not 52.5.)