Investing.com - Manufacturing activity in the euro zone expanded at a slower rate than expected in October, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index inched up to a seasonally adjusted 51.3 in October from a final reading of 51.1 in September.
Analysts had expected the index to inch up to 51.4 in this month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone declined to a two-month low in October.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 50.9 this month from 52.2 in September, disappointing expectations for an increase to 52.4.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “The euro zone economy expanded at a quarterly rate of 0.2% at the start of the fourth quarter, suggesting an ongoing, albeit sluggish, recovery.”
He added that, “Attention is likely to be focused on whether the region requires more policy action to boost the recovery rather than on the timing of any withdrawal of stimulus.”
Following the release of the data, the euro turned lower against the U.S. dollar, with EUR/USD inching down 0.03% to trade at 1.3773.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.45%, France’s CAC 40 added 0.15%, London’s FTSE 100 eased up 0.2%, while Germany's DAX edged 0.4% higher.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index inched up to a seasonally adjusted 51.3 in October from a final reading of 51.1 in September.
Analysts had expected the index to inch up to 51.4 in this month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also showed that service sector activity in the euro zone declined to a two-month low in October.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 50.9 this month from 52.2 in September, disappointing expectations for an increase to 52.4.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “The euro zone economy expanded at a quarterly rate of 0.2% at the start of the fourth quarter, suggesting an ongoing, albeit sluggish, recovery.”
He added that, “Attention is likely to be focused on whether the region requires more policy action to boost the recovery rather than on the timing of any withdrawal of stimulus.”
Following the release of the data, the euro turned lower against the U.S. dollar, with EUR/USD inching down 0.03% to trade at 1.3773.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.45%, France’s CAC 40 added 0.15%, London’s FTSE 100 eased up 0.2%, while Germany's DAX edged 0.4% higher.