Investing.com - Private sector activity in the euro zone grew at a slightly faster rate in December, but the rate of expansion was still one of the weakest seen over the past year, according to data released on Tuesday.
Research group Markit said its preliminary euro zone manufacturing purchasing managers’ index rose to a five-month high of 50.8 this month from a final reading of 50.1 in November. Economists had expected the index to tick up to 50.5.
The preliminary reading of the euro zone services PMI rose to a two-month high 51.9 from a final reading of 51.1 last month, compared to expectations for an increase to 51.5.
The composite output index, which measures the combined output of both the manufacturing and service sectors, rose to 51.9, also a two-month high, from November’s 16-month low of 51.1.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The euro zone saw slightly faster growth of business activity in December but still ended the year on a whimper rather than a roar, with worrying weakness still evident in the core countries of France and Germany,” Chris Williamson, chief economist at Markit said.
“The increase was the second–lowest seen over the past year, suggesting the euro area economy expanded by a mere 0.1% in the fourth quarter.”
EUR/USD was at 1.2493 from 1.2476 ahead of the release of the data.
European stock markets remained broadly lower. France’s CAC 40 fell 0.85%, the DJ Euro Stoxx 50 was down 0.88%, Germany's DAX lost 0.56%, while London’s FTSE 100 slid 0.43%.