Investing.com – Manufacturing activity in Germany fell more-than-expected in November, dropping to a 28-month low, preliminary data showed on Wednesday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell by 1.2 points to a seasonally adjusted 47.9 in November, down from 49.1 in October.
Analysts had expected the index to decline by 0.7 points to 48.4 in November.
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 four-month high in November.
The preliminary services purchasing managers’ index rose by 0.8 points to a seasonally adjusted 51.4 from 50.6 in October. Analysts had expected the index to ease down 0.4 points to 50.2.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Germany’s private sector output broadly flat lined during November, with a slightly better than expected rise in services activity helping offset the steepest drop in manufacturing production since June 2009.”
“The forward-looking elements of the survey are still flashing red about a slide back into recession, even if the latest output figures probably suggest the risk of an imminent contraction of the German economy has receded a notch,” he added.
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.34% to trade at 1.3459.
Meanwhile, European stock markets held on to losses. The EURO STOXX 50 fell 0.4%, France’s CAC 40 slumped 0.5%, the FTSE 100 declined 0.45%, while Germany's DAX retreated 0.3%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell by 1.2 points to a seasonally adjusted 47.9 in November, down from 49.1 in October.
Analysts had expected the index to decline by 0.7 points to 48.4 in November.
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 four-month high in November.
The preliminary services purchasing managers’ index rose by 0.8 points to a seasonally adjusted 51.4 from 50.6 in October. Analysts had expected the index to ease down 0.4 points to 50.2.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Germany’s private sector output broadly flat lined during November, with a slightly better than expected rise in services activity helping offset the steepest drop in manufacturing production since June 2009.”
“The forward-looking elements of the survey are still flashing red about a slide back into recession, even if the latest output figures probably suggest the risk of an imminent contraction of the German economy has receded a notch,” he added.
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.34% to trade at 1.3459.
Meanwhile, European stock markets held on to losses. The EURO STOXX 50 fell 0.4%, France’s CAC 40 slumped 0.5%, the FTSE 100 declined 0.45%, while Germany's DAX retreated 0.3%.