Investing.com - Manufacturing activity in Germany in May expanded at the fastest pace in two months, while service sector activity improved modestly, 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 49.0 in May from a final reading of 48.1 in April.
Analysts had expected the index to inch up to 48.5 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany improved less-than-expected in May.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 49.8 from a reading of 49.6 in April. Analysts had expected the index to ease up to 50.0.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The ongoing lack of growth momentum in Germany’s manufacturing and service sectors could offset any boost to second quarter GDP from a weather-related rebound in construction output.”
Following the release of the data, the euro turned higher against the U.S. dollar, with EUR/USD easing up 0.07% to trade at 1.2868.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.8%, France’s CAC 40 plunged 1.9%, London’s FTSE 100 dropped 1.6%, while Germany's DAX tumbled 2%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 49.0 in May from a final reading of 48.1 in April.
Analysts had expected the index to inch up to 48.5 in May.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the report showed that service sector activity in Germany improved less-than-expected in May.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 49.8 from a reading of 49.6 in April. Analysts had expected the index to ease up to 50.0.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The ongoing lack of growth momentum in Germany’s manufacturing and service sectors could offset any boost to second quarter GDP from a weather-related rebound in construction output.”
Following the release of the data, the euro turned higher against the U.S. dollar, with EUR/USD easing up 0.07% to trade at 1.2868.
Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 fell 1.8%, France’s CAC 40 plunged 1.9%, London’s FTSE 100 dropped 1.6%, while Germany's DAX tumbled 2%.