Investing.com - Manufacturing activity in France contracted at the slowest pace in 16-months in June, while services sector activity improved to a ten-month high, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index rose to a seasonally adjusted 48.3 in June, up from May’s reading of 46.4.
Analysts had expected the index to rise to 47.0 in June.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France rose to ten-month high of 46.5 in June from 44.3 in May. Analysts had expected the index to ease up to 44.8.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Conditions remain weak in France, but the latest Flash PMI data offer further evidence that the decline in output has eased over the second quarter.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.35% to trade at 1.3249.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.9%, France’s CAC 40 plunged 1.8%, London’s FTSE 100 dropped 1.5%, while Germany's DAX tumbled 2%.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index rose to a seasonally adjusted 48.3 in June, up from May’s reading of 46.4.
Analysts had expected the index to rise to 47.0 in June.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France rose to ten-month high of 46.5 in June from 44.3 in May. Analysts had expected the index to ease up to 44.8.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Conditions remain weak in France, but the latest Flash PMI data offer further evidence that the decline in output has eased over the second quarter.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.35% to trade at 1.3249.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.9%, France’s CAC 40 plunged 1.8%, London’s FTSE 100 dropped 1.5%, while Germany's DAX tumbled 2%.