Investing.com - Manufacturing activity in France contracted at the same pace in August as it did in July, while contraction in the services sector activity deepened, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index held steady at a seasonally adjusted 49.7 in August, unchanged from July’s reading.
Analysts had expected the index to rise to 50.3 in August.
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 two-month low of 47.7 in August from 48.6 in July. Analysts had expected the index to ease up to 49.2.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Although output fell at a sharper pace in August, the rate of decline remained much slower than seen earlier in the year.”
He added that, “there were encouraging signs from some of the more forward-looking indicators, such as a slight rise in manufacturing new orders for the first time in over two years and service providers’ confidence holding steady on July’s 11-month high.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.18% to trade at 1.3331.
Meanwhile, European stock markets were mildly higher after the open. The EURO STOXX 50 rose 0.3%, France’s CAC 40 added 0.4%, London’s FTSE 100 inched up 0.2%, while Germany's DAX edged 0.2% higher.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index held steady at a seasonally adjusted 49.7 in August, unchanged from July’s reading.
Analysts had expected the index to rise to 50.3 in August.
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 two-month low of 47.7 in August from 48.6 in July. Analysts had expected the index to ease up to 49.2.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Although output fell at a sharper pace in August, the rate of decline remained much slower than seen earlier in the year.”
He added that, “there were encouraging signs from some of the more forward-looking indicators, such as a slight rise in manufacturing new orders for the first time in over two years and service providers’ confidence holding steady on July’s 11-month high.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.18% to trade at 1.3331.
Meanwhile, European stock markets were mildly higher after the open. The EURO STOXX 50 rose 0.3%, France’s CAC 40 added 0.4%, London’s FTSE 100 inched up 0.2%, while Germany's DAX edged 0.2% higher.