German Preliminary Manufacturing PMI unexpectedly drops to 42.5 in December vs. 43.8 expected

• Germany’s Manufacturing PMI fell to 42.5 in December vs. 43.8 forecast.
• Services PMI for the German economy bounces to 51.0 in December vs. 49.2 estimate.
• EUR/USD picks up fresh bids above 1.0500 after mixed German PMIs.

The German manufacturing sector activity worsened in December while the services sector returned to expansion, the preliminary business activity report published by the HCOB survey showed Monday.

The HCOB Manufacturing PMI in the Eurozone’s top economy dropped to 42.5 this month, compared to November’s 43.0 while missing the estimates of 43.8.