Investing.com – Manufacturing activity in the euro zone fell more-than-expected in November, falling to a 28-month low, preliminary data showed on Wednesday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell by 0.7 points to a seasonally adjusted 46.4 in November, down from 47.1 in October.
Analysts had expected the index to decline by 0.5 points to 46.6 in November.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that service sector activity in the euro zone improved slightly, but remained in contraction territory for the third consecutive month in November.
The preliminary services purchasing managers’ index rose by 1.4 points to a seasonally adjusted 47.8, up from 46.4 in October. Analysts had expected the index to ease down by 0.3 points to 46.1.
German output growth remained close to stagnation, while France saw output fall for the second month running. Outside of France and Germany, activity showed the largest monthly decline since June 2009.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “Overall, the survey data suggest that the euro zone is contracting at a quarterly rate of approximately 0.6% in the fourth quarter.”
“As feared earlier in the year, malaise has spread from the periphery to the core. Even Germany is stagnating and France contracting by around 0.5%,” he added.
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.46% to trade at 1.3442.
Meanwhile, European stock markets added to losses. The EURO STOXX 50 fell 0.75%, France’s CAC 40 slumped 0.65%, the FTSE 100 declined 0.75%, while Germany's DAX retreated 0.5%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell by 0.7 points to a seasonally adjusted 46.4 in November, down from 47.1 in October.
Analysts had expected the index to decline by 0.5 points to 46.6 in November.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that service sector activity in the euro zone improved slightly, but remained in contraction territory for the third consecutive month in November.
The preliminary services purchasing managers’ index rose by 1.4 points to a seasonally adjusted 47.8, up from 46.4 in October. Analysts had expected the index to ease down by 0.3 points to 46.1.
German output growth remained close to stagnation, while France saw output fall for the second month running. Outside of France and Germany, activity showed the largest monthly decline since June 2009.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “Overall, the survey data suggest that the euro zone is contracting at a quarterly rate of approximately 0.6% in the fourth quarter.”
“As feared earlier in the year, malaise has spread from the periphery to the core. Even Germany is stagnating and France contracting by around 0.5%,” he added.
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.46% to trade at 1.3442.
Meanwhile, European stock markets added to losses. The EURO STOXX 50 fell 0.75%, France’s CAC 40 slumped 0.65%, the FTSE 100 declined 0.75%, while Germany's DAX retreated 0.5%.