Investing.com - Manufacturing activity in the euro zone improved modestly in September, but remained in contraction territory for the 13th consecutive month, 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 46.0 in September from a final reading of 45.1 in August.
Analysts had expected the index to ease up to 45.4 in September.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The September reading rounds of the weakest quarter since the second quarter of 2009, with the average PMI reading for the third quarter at 46.2, down from an average of 46.4 in the second quarter.
The report also showed that service sector activity in the euro zone deteriorated to the lowest level since July 2009 in September.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 46.0 from 47.2 in August. Analysts had expected the index to tick up to 47.4 in September.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The flash PMI is consistent with GDP contracting by 0.6% in the third quarter and sending the region back into a technical recession.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD down 0.58% to trade at 1.2973.
Meanwhile, European stock markets remained broadly lower after the open. The EURO STOXX 50 fell 0.7%, France’s CAC 40 declined 0.75%, London’s FTSE 100 slumped 0.7%, while Germany's DAX retreated 0.5%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 46.0 in September from a final reading of 45.1 in August.
Analysts had expected the index to ease up to 45.4 in September.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The September reading rounds of the weakest quarter since the second quarter of 2009, with the average PMI reading for the third quarter at 46.2, down from an average of 46.4 in the second quarter.
The report also showed that service sector activity in the euro zone deteriorated to the lowest level since July 2009 in September.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 46.0 from 47.2 in August. Analysts had expected the index to tick up to 47.4 in September.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “The flash PMI is consistent with GDP contracting by 0.6% in the third quarter and sending the region back into a technical recession.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD down 0.58% to trade at 1.2973.
Meanwhile, European stock markets remained broadly lower after the open. The EURO STOXX 50 fell 0.7%, France’s CAC 40 declined 0.75%, London’s FTSE 100 slumped 0.7%, while Germany's DAX retreated 0.5%.