Investing.com - Manufacturing activity in the euro zone improved more-than-expected in May, but remained in contraction territory for the 22nd 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 47.8 in May from a final reading of 46.7 in April.
Analysts had expected the index to inch up to 47.0 in May.
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 improved to a three-month high, but remained deep in contraction territory.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 47.5 from 47.0 in April, above expectations for an increase to 47.2.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “Although the Eurozone PMI rose for a second successive month in May, the survey remains firmly in contraction territory and indicates that the economy is likely to contract in the second quarter at a similar rate to the 0.2% decline seen in the first three months of the year.”
Following the release of the data, the euro was modestly higher against the U.S. dollar, with EUR/USD easing up 0.05% to trade at 1.2866.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 fell 2.3%, France’s CAC 40 plunged 2.2%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2.3%.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 47.8 in May from a final reading of 46.7 in April.
Analysts had expected the index to inch up to 47.0 in May.
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 improved to a three-month high, but remained deep in contraction territory.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 47.5 from 47.0 in April, above expectations for an increase to 47.2.
Commenting on the report, Chris Williamson, Chief Economist at Markit said, “Although the Eurozone PMI rose for a second successive month in May, the survey remains firmly in contraction territory and indicates that the economy is likely to contract in the second quarter at a similar rate to the 0.2% decline seen in the first three months of the year.”
Following the release of the data, the euro was modestly higher against the U.S. dollar, with EUR/USD easing up 0.05% to trade at 1.2866.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 fell 2.3%, France’s CAC 40 plunged 2.2%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2.3%.