Investing.com - Growth in French private sector output strengthened in February, easing concerns over the economic outlook of the euro zone’s second largest economy, according to data released on Tuesday.
The preliminary reading of the Markit services purchasing managers’ index rose to a 66-month high of 56.7 this month from 54.1 in January
Economists had forecast an uptick to 53.8.
The manufacturing PMI fell to 52.3, compared to expectations for 53.5 and from 53.6 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors rose to a 69-month high 56.2 from 54.0, beating expectations for 53.7.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The latest PMI data highlighted a further marked improvement in private sector conditions in France", Alex Gill, economist at survey compiler Markit said.
“Service providers remained the driver of overall growth, as evidenced by further sharp expansions in new orders and employment, the sharpest in five-and-a-half years in each case. The picture was also positive for manufacturers, albeit slightly less rosy."
EUR/USD was at 1.0571 from around 1.0578 ahead of the release of the data, while EUR/GBP was at 0.8503 from 0.8509 earlier.