Investing.com - Private sector output in Germany expanded at the fastest pace in more than six-years in December, fueling optimism over the health of the euro zone's largest economy, preliminary data showed on Thursday.
Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 57.3 in November to an 80-month high of 58.7 in December, easily beating forecasts for 57.2.
The preliminary German manufacturing purchasing managers’ index climbed to a record-high of 63.3 from a final reading of 62.5 in November. Analysts had expected the index to slip to 62.2 this month.
The overall performance in the manufacturing sector was the best seen since survey data were first collected in early-1996.
The flash services purchasing managers’ index rose to a 24-month peak of 55.8 from 54.3 in November, above expectations for a reading of 54.7.
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, “The results mean that IHS Markit’s forecast for annual GDP growth of 2.6% is looking good, with a slight chance of an even higher out-turn."
EUR/USD was at 1.1835 from around 1.1830 ahead of the release of the data, while EUR/GBP was at 0.8812 from 0.8807 earlier.
Meanwhile, European stock markets were slightly lower after the open. Germany's DAX fell 0.1%, the EURO STOXX 50 dipped 0.1%, France’s CAC 40 inched down 0.1%, while London’s FTSE 100 declined 0.1%.