Investing.com – Manufacturing activity in Germany fell more-than-expected in October, dropping to a 27-month low, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 48.9 in October, down from 50.3 in September.
Analysts had expected the index to decline to 50.0 in October.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany rose to a three-month high in October.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 52.1 from 49.7 in September. Analysts had expected the index to ease up to 49.8.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The manufacturing sector has seen the steepest reversal of fortunes, in part due to deteriorating export demand, and the latest survey pointed to an outright fall in output for the first time since mid-2009.”
“Worries related to the euro zone debt crisis were widely cited by firms as having a negative influence on business conditions, with the uncertainty causing clients to delay investment decisions and cut back on non-essential spending,” he added.
Following the release of the data, the euro was fractionally higher against the U.S. dollar, with EUR/USD easing up 0.02% to trade at 1.3899.
Meanwhile, European stock markets were up after the open. The EURO STOXX 50 advanced 0.65%, France’s CAC 40 rose 0.6%, the FTSE 100 added 0.4%, while Germany's DAX jumped 1.1%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 48.9 in October, down from 50.3 in September.
Analysts had expected the index to decline to 50.0 in October.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany rose to a three-month high in October.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 52.1 from 49.7 in September. Analysts had expected the index to ease up to 49.8.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The manufacturing sector has seen the steepest reversal of fortunes, in part due to deteriorating export demand, and the latest survey pointed to an outright fall in output for the first time since mid-2009.”
“Worries related to the euro zone debt crisis were widely cited by firms as having a negative influence on business conditions, with the uncertainty causing clients to delay investment decisions and cut back on non-essential spending,” he added.
Following the release of the data, the euro was fractionally higher against the U.S. dollar, with EUR/USD easing up 0.02% to trade at 1.3899.
Meanwhile, European stock markets were up after the open. The EURO STOXX 50 advanced 0.65%, France’s CAC 40 rose 0.6%, the FTSE 100 added 0.4%, while Germany's DAX jumped 1.1%.