Investing.com - Manufacturing activity in Germany in April contracted at the sharpest rate in four months in April, while service sector activity shrank unexpectedly, preliminary data showed on Tuesday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 47.9 in April from a final reading of 49.0 in March.
Analysts had expected the index to remain unchanged at 49.0 in April.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany contracted at the fastest rate in six months in April.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 49.2 from a reading of 50.9 in March. Analysts had expected the index to ease up to 51.0.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The latest figures suggest any rebound in GDP over the first quarter could be rather short-lived,”
Following the release of the data, the euro turned sharply lower against the U.S. dollar, with EUR/USD falling 0.3% to trade at 1.3027.
Meanwhile, European stock markets were mostly higher. The EURO STOXX 50 rose 0.6%, France’s CAC 40 added 0.9%, London’s FTSE 100 tacked on 0.3%, while Germany's DAX eased up 0.1%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 47.9 in April from a final reading of 49.0 in March.
Analysts had expected the index to remain unchanged at 49.0 in April.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany contracted at the fastest rate in six months in April.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 49.2 from a reading of 50.9 in March. Analysts had expected the index to ease up to 51.0.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The latest figures suggest any rebound in GDP over the first quarter could be rather short-lived,”
Following the release of the data, the euro turned sharply lower against the U.S. dollar, with EUR/USD falling 0.3% to trade at 1.3027.
Meanwhile, European stock markets were mostly higher. The EURO STOXX 50 rose 0.6%, France’s CAC 40 added 0.9%, London’s FTSE 100 tacked on 0.3%, while Germany's DAX eased up 0.1%.