Investing.com - Private sector activity in France fell for the fifth consecutive month in September, as service sector output declined for the first time in three months, offsetting a slower decline in manufacturing output, according to data released on Tuesday.
Research group Markit reported that the preliminary reading of the French services purchasing managers’ index fell to a three month low of 49.4 from 50.3 in August, compared to expectations for a reading of 50.1.
The French manufacturing PMI rose to a four month high of 47.9 this month from 45.8 in August, but remained below the 50 level that separates growth from contraction. Economists had expected a reading of 47.0.
The French composite output index, which measures the combined output of both the manufacturing and service sectors fell to a three month low of 49.1 from 49.5 in August.
“French economic performance weakened in September, as a return to contraction of the service sector outweighed an easing rate of decline in manufacturing”, Jack Kennedy, senior economist at Markit said.
Following the release of the data, the euro edged higher against the dollar, with EUR/USD at 1.2857 compared to 1.2849 ahead of the data.
Meanwhile, European stock markets were lower. The DJ Euro Stoxx 50 was down 0.46%, France’s CAC 40 declined 0.64%, London’s FTSE 100 slumped 0.62%, while Germany's DAX fell 0.41%.