Investing.com - Manufacturing activity in Germany expanded at the highest pace since June 2011 this month, fuelling optimism over the health of the euro zone’s largest economy, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 54.2 in December from a final reading of 52.7 in November.
Analysts had expected the index to inch up to 53.0 this month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the preliminary services purchasing managers’ index declined to a seasonally adjusted 54.0 this month from a reading of 55.7 in November. Analysts had expected the index to ease down to 55.5.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Manufacturing achieved a particularly strong end to the year, with improving new order flows and renewed job creation also providing encouragement that the sector has gained momentum since the autumn.”
Following the release of the data, the euro held on to modest gains against the U.S. dollar, with EUR/USD inching up 0.04% to trade at 1.3748.
Meanwhile, European stock markets turned mildly higher. The EURO STOXX 50 advanced 0.3%, France’s CAC 40 added 0.1%, London’s FTSE 100 was flat, while Germany's DAX inched up 0.2%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 54.2 in December from a final reading of 52.7 in November.
Analysts had expected the index to inch up to 53.0 this month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Meanwhile, the preliminary services purchasing managers’ index declined to a seasonally adjusted 54.0 this month from a reading of 55.7 in November. Analysts had expected the index to ease down to 55.5.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “Manufacturing achieved a particularly strong end to the year, with improving new order flows and renewed job creation also providing encouragement that the sector has gained momentum since the autumn.”
Following the release of the data, the euro held on to modest gains against the U.S. dollar, with EUR/USD inching up 0.04% to trade at 1.3748.
Meanwhile, European stock markets turned mildly higher. The EURO STOXX 50 advanced 0.3%, France’s CAC 40 added 0.1%, London’s FTSE 100 was flat, while Germany's DAX inched up 0.2%.