Investing.com – Manufacturing activity in the euro zone declined unexpectedly in January, falling to a two-month low, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index fell to a seasonally adjusted 56.9 in January, down from 57.1 in December, whose figure was revised up from 56.8.
Analysts had expected the index to hold steady at 57.1 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also said that service sector activity in the euro zone increased unexpectedly in January, rising to a two-month high.
The preliminary services purchasing manager's index rose to a seasonally adjusted 55.2 in January, up from 54.2 in December, whose figure was revised up from 53.7.
Analysts had expected the index to remain unchanged at 54.2 in January.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The Eurozone has started 2011 on a solid footing, with a record rise in new orders in Germany helping to sustain economic growth.”
He added, “However, the divergence between Germany and the rest of the single currency area has reached a new high, and outside of France and Germany the periphery has now seen new orders fall in four of the past five months.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD falling 0.35% to hit 1.3572.
Meanwhile, European stock markets were down. The EURO STOXX 50 fell 0.12%, France’s CAC 40 slumped 0.12%, the FTSE 100 dropped 0.15% and Germany's DAX was down 0.44%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index fell to a seasonally adjusted 56.9 in January, down from 57.1 in December, whose figure was revised up from 56.8.
Analysts had expected the index to hold steady at 57.1 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also said that service sector activity in the euro zone increased unexpectedly in January, rising to a two-month high.
The preliminary services purchasing manager's index rose to a seasonally adjusted 55.2 in January, up from 54.2 in December, whose figure was revised up from 53.7.
Analysts had expected the index to remain unchanged at 54.2 in January.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The Eurozone has started 2011 on a solid footing, with a record rise in new orders in Germany helping to sustain economic growth.”
He added, “However, the divergence between Germany and the rest of the single currency area has reached a new high, and outside of France and Germany the periphery has now seen new orders fall in four of the past five months.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD falling 0.35% to hit 1.3572.
Meanwhile, European stock markets were down. The EURO STOXX 50 fell 0.12%, France’s CAC 40 slumped 0.12%, the FTSE 100 dropped 0.15% and Germany's DAX was down 0.44%.