Investing.com - French private sector activity grew at the fastest pace in five months in March, easing concerns over the economic outlook of the euro zone’s second largest economy, preliminary data showed on Tuesday.
Markit said that its seasonally adjusted Flash France Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 49.3 in February to 51.1 in March, beating expectations for 49.6.
The preliminary services purchasing managers’ index improved to a seasonally adjusted 51.2 this month. The reading came in above expectations for 49.5 and up from 49.2 in February.
In contrast, the French manufacturing purchasing managers’ index declined to a seasonally adjusted 49.6 this month, missing expectations for 50.2 and down from 50.2 a month earlier.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
New business received by French private sector companies returned to growth in March. Although marginal, the latest increase was the sharpest since last November. Growth of new work was centered on the service sector, where the pace of expansion quickened to a four-month high. By contrast, manufacturers signaled a steeper decline in new orders, with the latest drop the most marked since August 2015.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, " Overall, PMI data suggest a further modest rise in GDP during Q1, doing little to suggest any break from the sluggish growth pattern seen during recent times.”
EUR/USD was at 1.1242 from around 1.1240 ahead of the release of the data, while EUR/GBP was at 0.7845 from 0.7836 earlier.
Meanwhile, European stock markets were lower after the open. France’s CAC 40 shed 0.75%, the EURO STOXX 50 dipped 0.8%, Germany's DAX fell 1%, while London’s FTSE 100 slumped 0.15%.