Investing.com - Private sector output in Germany slowed to the lowest level in eight months in March, fueling concern over the health of the euro zone's largest economy.
Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors registered a reading of 55.4 in March, down from 57.6 in February.
Economists had forecast a reading of 57.0.
Although remaining solid overall, growth has now softened in each of the past two months after having reached a near seven-year high in January.
The flash manufacturing purchasing managers’ index declined to an eight-month low of 58.4 from a final reading of 60.6 in February.
Analysts had expected the index to slip to 59.8.
The preliminary German services purchasing managers’ index fell to 54.2 this month, its lowest in seven months, from 55.3.
That was below expectations for a reading of 55.0.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Phil Smith, Principal Economist at Markit, said, “Growth in Germany’s private sector has pulled back sharply since the start of the year, with the pace of expansion in March well below January’s near seven-year high."