Investing.com - German private sector activity grew at a slightly faster pace than expected in March, as solid service sector growth contrasted with slowing manufacturing activity, preliminary data showed on Tuesday.
Markit said that its seasonally adjusted Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors held steady 54.1 in March, unchanged from the prior month and above expectations for 53.9.
The preliminary services purchasing managers’ index inched up to a seasonally adjusted 55.5 in March from 55.3 in the prior month. Analysts had expected the index to dip to 55.0.
The preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 50.4 this month from a final reading of 50.5 in February, missing estimates for 50.8.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “The PMI results provide the first complete picture of business conditions over the first quarter as a whole and are indicative of moderate, although unspectacular GDP growth, similar to the rates seen during the last two quarters.”
EUR/USD was at 1.1189 from around 1.1201 ahead of the release of the data, while EUR/GBP was at 0.7844 from 0.7833 earlier.
Meanwhile, European stock markets were lower after the open. Germany's DAX fell 1.8%, he EURO STOXX 50 shed 1.5%, France’s CAC 40 dropped 1.2%, while London’s FTSE 100 inched down 1.1%.