Investing.com - French private sector activity accelerated in December, easing concerns over the economic outlook of the euro zone’s second largest economy according to data released on Thursday.
The preliminary reading of the Markit services purchasing managers’ index came in at a three month high of 52.6 this month from 51.6 in November.
Economists had forecast an uptick to 52.0.
The manufacturing PMI rose to a 67-month high of 53.5, compared to expectations for 51.9 and from 51.7 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors rose to an 18-month high of 52.8 from 51.4, beating expectations for 51.6.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“According to latest survey data, the French private sector grew at a solid rate in December. Underpinning the expansion was a marked rise in manufacturing output, driven by stronger domestic and foreign demand conditions”, Alex Gill, economist at survey compiler Markit said.