Investing.com – Manufacturing activity in the euro zone rose unexpectedly in November, rising to its highest level in four months, preliminary data showed on Tuesday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index rose to a seasonally adjusted 55.5 in November, up from 54.6 in October, whose figure was revised up from 54.1.
Analysts had expected the index to decline to 54.4 in November.
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 November, rising to its highest level in three months.
The preliminary services purchasing manager's index rose to a seasonally adjusted 55.2 in November, after falling to 53.3 in October, whose figure was revised up from 53.2.
Analysts had expected the index to decline to 53.2 in November.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The flash PMI readings for November indicate that the Euro zone regained some of the growth momentum that had been lost since July’s peak.”
He added, “However, growth remains very unbalanced, led by a renewed surge of output and employment in Germany – which is driving economic growth at almost twice the euro area average – while the periphery continues to struggle with extremely tough conditions.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD falling 0.28% to hit 1.3588.
Meanwhile, European stock markets were down. The EURO STOXX 50 fell 0.56%, France’s CAC 40 declined 0.51%, the FTSE 100 shed 0.36% and Germany's DAX was down 0.05%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index rose to a seasonally adjusted 55.5 in November, up from 54.6 in October, whose figure was revised up from 54.1.
Analysts had expected the index to decline to 54.4 in November.
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 November, rising to its highest level in three months.
The preliminary services purchasing manager's index rose to a seasonally adjusted 55.2 in November, after falling to 53.3 in October, whose figure was revised up from 53.2.
Analysts had expected the index to decline to 53.2 in November.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The flash PMI readings for November indicate that the Euro zone regained some of the growth momentum that had been lost since July’s peak.”
He added, “However, growth remains very unbalanced, led by a renewed surge of output and employment in Germany – which is driving economic growth at almost twice the euro area average – while the periphery continues to struggle with extremely tough conditions.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD falling 0.28% to hit 1.3588.
Meanwhile, European stock markets were down. The EURO STOXX 50 fell 0.56%, France’s CAC 40 declined 0.51%, the FTSE 100 shed 0.36% and Germany's DAX was down 0.05%.