Investing.com – Manufacturing activity in Germany fell more-than-expected in May, dropping to a six-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 58.2 in May, compared to 62.0 in April, whose figure was upwardly revised from 61.7.
Analysts had expected the index to decline to 61.2 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report also said that service sector activity in Germany declined unexpectedly in May, falling to an eight-month low.
The preliminary services purchasing manager's index fell to a seasonally adjusted 54.9 in May, down from 56.8 in April, whose figure was revised down from 57.7. Analysts had expected the index to ease up to 57.1 in May.
Slower output growth has now been recorded in each of the past four months. Service providers pointed to the weakest increase in business activity since September 2010.
Manufacturers continued to report stronger growth than service providers, but the latest rise in production was the slowest since November 2010.
Input price inflation meanwhile slowed sharply in May to its weakest for six months, largely reflecting a moderation in the manufacturing sector.
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD dropping 1.02% to hit 1.4012.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 plunged 1.8%, France’s CAC 40 sank 1.75%, the FTSE 100 fell 1.6%, while Germany's DAX slumped 1.85%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers index fell to a seasonally adjusted 58.2 in May, compared to 62.0 in April, whose figure was upwardly revised from 61.7.
Analysts had expected the index to decline to 61.2 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report also said that service sector activity in Germany declined unexpectedly in May, falling to an eight-month low.
The preliminary services purchasing manager's index fell to a seasonally adjusted 54.9 in May, down from 56.8 in April, whose figure was revised down from 57.7. Analysts had expected the index to ease up to 57.1 in May.
Slower output growth has now been recorded in each of the past four months. Service providers pointed to the weakest increase in business activity since September 2010.
Manufacturers continued to report stronger growth than service providers, but the latest rise in production was the slowest since November 2010.
Input price inflation meanwhile slowed sharply in May to its weakest for six months, largely reflecting a moderation in the manufacturing sector.
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD dropping 1.02% to hit 1.4012.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 plunged 1.8%, France’s CAC 40 sank 1.75%, the FTSE 100 fell 1.6%, while Germany's DAX slumped 1.85%.