Investing.com – Manufacturing activity in Germany declined unexpectedly in January, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers index fell to a seasonally adjusted 60.2 in January, down from 60.7 in December, whose figure was revised down from 60.9.
Analysts had expected the index to rise to 61.1 in January.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report also said that service sector activity in Germany rose unexpectedly in January.
The preliminary services purchasing manager's index rose to a seasonally adjusted 60.0 in January, after rising to 59.2 in December, whose figure was revised up from 58.3.
Analysts had expected the index to remain unchanged at 59.2 in January.
Commenting on the report, Tim Moore, economist at Markit said, “Manufacturing exports were the initial spark that lit the German recovery, but the latest PMI numbers are an encouraging sign that that the torch has been passed on to the wider economy.”
He added, “Strong job creation has laid the foundation for increased domestic consumption, while surging business optimism in Germany could lead to a secondary boost from investment spending.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.3574.
Meanwhile, European stock markets were mixed. The EURO STOXX 50 climbed 0.03%, France’s CAC 40 added 0.02%, the FTSE 100 fell 0.08% and Germany's DAX was down 0.27%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers index fell to a seasonally adjusted 60.2 in January, down from 60.7 in December, whose figure was revised down from 60.9.
Analysts had expected the index to rise to 61.1 in January.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report also said that service sector activity in Germany rose unexpectedly in January.
The preliminary services purchasing manager's index rose to a seasonally adjusted 60.0 in January, after rising to 59.2 in December, whose figure was revised up from 58.3.
Analysts had expected the index to remain unchanged at 59.2 in January.
Commenting on the report, Tim Moore, economist at Markit said, “Manufacturing exports were the initial spark that lit the German recovery, but the latest PMI numbers are an encouraging sign that that the torch has been passed on to the wider economy.”
He added, “Strong job creation has laid the foundation for increased domestic consumption, while surging business optimism in Germany could lead to a secondary boost from investment spending.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.3574.
Meanwhile, European stock markets were mixed. The EURO STOXX 50 climbed 0.03%, France’s CAC 40 added 0.02%, the FTSE 100 fell 0.08% and Germany's DAX was down 0.27%.