Investing.com - German private sector output growth unexpectedly rose in March, registering its strongest activity in nearly six years and underlining optimism over the health of the euro zone’s largest economy, according to data released on Tuesday.
The preliminary reading of the Markit manufacturing purchasing managers’ index rose to 58.3 this month from 56.8 in February.
Economists had expected the index to tick down to 56.5.
The services PMI rose to 55.6 in March, compared to expectations for 54.6 and up from 54.4 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors advanced to 57.0 from 56.1, compared to expectations for 56.0. That was its highest level since May 2011.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The March PMI survey data showed that Germany posted the fastest rate of private sector output growth in nearly six years at the end of the first quarter of 2017, while also signaling a near-record rate of employment growth and the strongest cost pressures for nearly six years.
After the report, EUR/USD traded at 1.0799 compared to 1.0783 ahead of the release, while EUR/GBP was at 0.8643 from 0.8633 earlier.
Meanwhile, European stock markets were trading mixed. The Euro Stoxx 50 dropped 0.18%, Germany's DAX gained 0.03%, France’s CAC 40 lost 0.20%, while London’s FTSE 100 inched up 0.02%.