Investing.com - Manufacturing activity in Germany expanded at the fastest pace in more than two years in August, easing concerns over the impact of the euro zone’s debt crisis on the region’s largest economy, 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 52.0 in August from a final reading of 50.7 in July.
Analysts had expected the index to inch up to 51.2 in August.
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 more-than-expected in August, hitting a six-month high.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 52.4 this month from a reading of 51.3 in July. Analysts had expected the index to ease up to 51.8.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The survey provides confirmation that Germany’s economy is back on a solid footing and likely to remain in expansion through the third quarter of 2013.”
Following the release of the data, the euro trimmed losses against the U.S. dollar, with EUR/USD shedding 0.06% to trade at 1.3347.
Meanwhile, European stock markets added to gains. The EURO STOXX 50 rose 0.9%, France’s CAC 40 added 0.8%, London’s FTSE 100 inched up 0.6%, while Germany's DAX rallied 0.9%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 52.0 in August from a final reading of 50.7 in July.
Analysts had expected the index to inch up to 51.2 in August.
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 more-than-expected in August, hitting a six-month high.
The preliminary services purchasing managers’ index rose to a seasonally adjusted 52.4 this month from a reading of 51.3 in July. Analysts had expected the index to ease up to 51.8.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “The survey provides confirmation that Germany’s economy is back on a solid footing and likely to remain in expansion through the third quarter of 2013.”
Following the release of the data, the euro trimmed losses against the U.S. dollar, with EUR/USD shedding 0.06% to trade at 1.3347.
Meanwhile, European stock markets added to gains. The EURO STOXX 50 rose 0.9%, France’s CAC 40 added 0.8%, London’s FTSE 100 inched up 0.6%, while Germany's DAX rallied 0.9%.