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German flash manufacturing PMI rises more-than-expected

Published 12/16/2010, 03:50 AM
EUR/USD
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Investing.com – Manufacturing activity in Germany rose more-than-expected in December, rising at the sharpest pace in four-and-a-half years, preliminary data showed on Thursday.

In a report, market research group Markit said that its preliminary German manufacturing purchasing managers index rose to a seasonally adjusted 60.9 in December, up from 58.1 in November, whose figure was revised down from 58.9.

Analysts had expected the index to rise to 58.2 in December.

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

The report also said that service sector activity in Germany fell more-than-expected in December.

The preliminary services purchasing manager's index fell to a seasonally adjusted 58.3 in December, after rising to 59.2 in November, whose figure was revised up from 58.6.

Analysts had expected the index to decline to 59.1 in December.

Commenting on the report, Tim Moore, economist at Markit said, “The manufacturing sector appears to have shrugged off the slowdown seen during the autumn, as output growth accelerated for the third month running and job creation hit a survey record high.”

Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD gaining 0.31% to hit 1.3254.

Meanwhile, European stock markets were up. The EURO STOXX 50 climbed 0.16%, France’s CAC 40 added 0.30%, the FTSE 100 rose 0.31% and Germany's DAX was up 0.13%.

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