Investing.com – Manufacturing activity in the euro zone rose unexpectedly in December, rising to its highest level in eight months, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index rose to a seasonally adjusted 56.8 in December, up from 55.3 in November, whose figure was revised down from 55.5.
Analysts had expected the index to hold steady at 55.3 in December.
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 declined more-than-expected in December, falling to a 2-month low.
The preliminary services purchasing manager's index fell to a seasonally adjusted 53.7 in December, after rising to 55.4 in November, whose figure was revised up from 55.2.
Analysts had expected the index to decline to 55.3 in December.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The flash PMI readings for December indicate widening divergences within the Eurozone. A near-record rate of growth in Germany and robust expansion in France contrast with a slowdown to near-stagnation in the other euro nations collectively.”
Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD rising 0.26% to hit 1.3248.
Meanwhile, European stock markets were up. The EURO STOXX 50 rose 0.12%, France’s CAC 40 jumped 0.30%, the FTSE 100 added 0.35% and Germany's DAX increased 0.12%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index rose to a seasonally adjusted 56.8 in December, up from 55.3 in November, whose figure was revised down from 55.5.
Analysts had expected the index to hold steady at 55.3 in December.
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 declined more-than-expected in December, falling to a 2-month low.
The preliminary services purchasing manager's index fell to a seasonally adjusted 53.7 in December, after rising to 55.4 in November, whose figure was revised up from 55.2.
Analysts had expected the index to decline to 55.3 in December.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The flash PMI readings for December indicate widening divergences within the Eurozone. A near-record rate of growth in Germany and robust expansion in France contrast with a slowdown to near-stagnation in the other euro nations collectively.”
Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD rising 0.26% to hit 1.3248.
Meanwhile, European stock markets were up. The EURO STOXX 50 rose 0.12%, France’s CAC 40 jumped 0.30%, the FTSE 100 added 0.35% and Germany's DAX increased 0.12%.