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French manufacturing PMI rises to 43.6 in February

Published 02/21/2013, 03:02 AM
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Investing.com - Manufacturing activity in France rose less-than-expected in February, while services sector activity weakened to a four-year low, 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 43.6 in February from a final reading of 42.9 in January.

Analysts had expected the index to rise to 43.8 in February.  

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

Meanwhile, the report showed that service sector activity in France fell to a 48-month low of 42.7 in February from a final reading of 43.6 in January. Analysts had expected the index to ease up to 44.5.

Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Following on from the news that GDP contracted -0.3% in the final quarter of 2012, PMI composite output data suggest that the first quarter is shaping up to be the worst since Q1 2009.”

Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD falling 0.17% to trade at 1.3262.

Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 0.7%, France’s CAC 40 dropped 0.7%, London’s FTSE 100 declined 0.6%, while Germany's DAX slumped 0.6%.

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