Investing.com - Manufacturing activity in the euro zone contracted at a faster-rate-than-expected in October, shrinking for the 14th consecutive month, preliminary data showed on Wednesday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 45.3 in October from a final reading of 46.1 in September.
Analysts had expected the index to ease up to 46.6 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Output continued to fall in response to a further marked contraction in new orders. The rate of decline in new business eased slightly since September, which had seen the largest drop since June 2009.
By country, Germany saw only a mild fall in output. In contrast, a steep contraction was again seen in France.
A worse performance was again seen outside of France and Germany, however, where output fell on average at the fastest rate since May.
The report also showed that service sector activity in the euro zone inched up to 46.2 in October from 46.1 in September. Analysts had expected the index to tick up to 46.5 in October.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The survey is running at a level which is historically consistent with the region’s economy contracting at a quarterly rate of over 0.5%.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD down 0.39% to trade at 1.2936.
Meanwhile, European stock markets remained broadly lower after the open. The EURO STOXX 50 fell 0.5%, France’s CAC 40 declined 0.3%, London’s FTSE 100 slumped 0.2%, while Germany's DAX retreated 0.25%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 45.3 in October from a final reading of 46.1 in September.
Analysts had expected the index to ease up to 46.6 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Output continued to fall in response to a further marked contraction in new orders. The rate of decline in new business eased slightly since September, which had seen the largest drop since June 2009.
By country, Germany saw only a mild fall in output. In contrast, a steep contraction was again seen in France.
A worse performance was again seen outside of France and Germany, however, where output fell on average at the fastest rate since May.
The report also showed that service sector activity in the euro zone inched up to 46.2 in October from 46.1 in September. Analysts had expected the index to tick up to 46.5 in October.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The survey is running at a level which is historically consistent with the region’s economy contracting at a quarterly rate of over 0.5%.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD down 0.39% to trade at 1.2936.
Meanwhile, European stock markets remained broadly lower after the open. The EURO STOXX 50 fell 0.5%, France’s CAC 40 declined 0.3%, London’s FTSE 100 slumped 0.2%, while Germany's DAX retreated 0.25%.