Investing.com - Manufacturing activity in the euro zone deteriorated to a two-month low in February, remaining in contraction territory for the 19th consecutive month, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 47.8 in February from a final reading of 47.9 in January.
Analysts had expected the index to ease up to 48.4 in February.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone deteriorated to a three-month low in February.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 47.3 from 48.6 in January. Analysts had expected the index to tick up to 49.2 in February.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “A steepening rate of decline in February is a disappointment, and suggests that the euro zone is on course to contract for a fourth consecutive quarter in the first three months of the year.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.65% to trade at 1.3198.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 fell 1.6%, France’s CAC 40 dropped 1.7%, London’s FTSE 100 declined 1.3%, while Germany's DAX slumped 1.6%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 47.8 in February from a final reading of 47.9 in January.
Analysts had expected the index to ease up to 48.4 in February.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone deteriorated to a three-month low in February.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 47.3 from 48.6 in January. Analysts had expected the index to tick up to 49.2 in February.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “A steepening rate of decline in February is a disappointment, and suggests that the euro zone is on course to contract for a fourth consecutive quarter in the first three months of the year.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.65% to trade at 1.3198.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 fell 1.6%, France’s CAC 40 dropped 1.7%, London’s FTSE 100 declined 1.3%, while Germany's DAX slumped 1.6%.