Investing.com - Manufacturing activity in Germany in February expanded for the first time in 12 months, while service sector activity fell to a two-month low, 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 50.1 in February from a final reading of 49.8 in January.
Analysts had expected the index to ease up to 50.5 in February.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany expanded at the slowest rate in two months in February.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 54.1 from a reading of 55.7 in January. Analysts had expected the index to ease down to 55.5.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Despite the slight loss of momentum since January, the survey suggests that Germany can still be relied upon as an engine of growth for the Eurozone.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.46% to trade at 1.3223.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 fell 1.9%, France’s CAC 40 dropped 1.7%, London’s FTSE 100 declined 1.3%, while Germany's DAX slumped 1.6%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 50.1 in February from a final reading of 49.8 in January.
Analysts had expected the index to ease up to 50.5 in February.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany expanded at the slowest rate in two months in February.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 54.1 from a reading of 55.7 in January. Analysts had expected the index to ease down to 55.5.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Despite the slight loss of momentum since January, the survey suggests that Germany can still be relied upon as an engine of growth for the Eurozone.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.46% to trade at 1.3223.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 fell 1.9%, France’s CAC 40 dropped 1.7%, London’s FTSE 100 declined 1.3%, while Germany's DAX slumped 1.6%.