Investing.com - Manufacturing activity in France expanded at the fastest pace in nine months in May, while services sector activity held steady, 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 45.5 in May, up from April’s reading of 44.4.
Analysts had expected the index to rise to 44.5 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France held steady at an eight-month high of 44.3 in May. Analysts had expected the index to ease up to 44.5.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Activity has continued to fall at a marked pace in Q2 so far, suggesting that another drop in GDP could well be on the cards following the recent confirmation that France was in recession during the previous two quarters.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.17% to trade at 1.2837.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 2.2%, France’s CAC 40 plunged 2.1%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2.1%.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index rose to a seasonally adjusted 45.5 in May, up from April’s reading of 44.4.
Analysts had expected the index to rise to 44.5 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in France held steady at an eight-month high of 44.3 in May. Analysts had expected the index to ease up to 44.5.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Activity has continued to fall at a marked pace in Q2 so far, suggesting that another drop in GDP could well be on the cards following the recent confirmation that France was in recession during the previous two quarters.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.17% to trade at 1.2837.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 2.2%, France’s CAC 40 plunged 2.1%, London’s FTSE 100 dropped 1.7%, while Germany's DAX tumbled 2.1%.