🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

German private sector activity falls to 7-month low in February

Published 02/22/2016, 03:34 AM
© Reuters.  German private sector activity falls to 7-month low
EUR/USD
-
EUR/GBP
-
UK100
-
FCHI
-
DE40
-
STOXX50
-

Investing.com - German private sector activity grew at the slowest pace in seven months in February, dampening optimism over the health of the euro zone’s largest economy, preliminary data showed on Monday.

Markit said that its seasonally adjusted Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors declined from 54.5 in January to 53.8 in February, a seven-month low and below forecasts for a reading of 54.1.

The preliminary German manufacturing purchasing managers’ index tumbled to a seasonally adjusted 50.2 this month from a final reading of 52.3 in January, the lowest in 15 months and missing estimates for 52.0.

Meanwhile, the preliminary services purchasing managers’ index inched up to a seasonally adjusted 55.1 in February from 55.0 in the prior month. Analysts had expected the index to dip to 54.7.

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

Service providers saw the fastest rise in new business for three months, but manufacturing new orders rose to the least extent since July 2015. Some manufacturers highlighted difficulties in securing orders from foreign clients, and new export business increased only marginally over the month.

Commenting on the report, Oliver Kolodseike, Economist at Markit said, “The German economy appears to be in the midst of a slowdown, according to February’s flash PMI results.”

EUR/USD fell to 1.1086 from around 1.1087 ahead of the release of the data, while EUR/GBP was at 0.7808 from 0.7809 earlier.

Meanwhile, European stock markets were higher after the open. Germany's DAX added 1.6%, the EURO STOXX 50 rose 1.8%, France’s CAC 40 tacked on 1.45%, while London’s FTSE 100 inched up 1.2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.