Investing.com - Manufacturing activity in France contracted at the fastest pace in six months in November, renewing fears over the economic outlook of the euro zone’s second-largest economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index declined to a seasonally adjusted 47.8 in November from a reading of 49.1 in September.
Analysts had expected the index to rise to 49.5 this month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France declined to a five-month low of 48.8 this month from 50.9 in October. Analysts had expected the index to ease up to 51.0.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Although remaining above the levels seen in the first half of the year, PMI data highlight the risk of a return to recession for France in Q4 following the -0.1% fall in GDP during Q3.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD shedding 0.29% to trade at 1.3401.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 0.9%, France’s CAC 40 declined 0.9%, London’s FTSE 100 slumped 0.5%, while Germany's DAX dropped 0.8%.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index declined to a seasonally adjusted 47.8 in November from a reading of 49.1 in September.
Analysts had expected the index to rise to 49.5 this month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France declined to a five-month low of 48.8 this month from 50.9 in October. Analysts had expected the index to ease up to 51.0.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Although remaining above the levels seen in the first half of the year, PMI data highlight the risk of a return to recession for France in Q4 following the -0.1% fall in GDP during Q3.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD shedding 0.29% to trade at 1.3401.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 0.9%, France’s CAC 40 declined 0.9%, London’s FTSE 100 slumped 0.5%, while Germany's DAX dropped 0.8%.