Investing.com - Manufacturing activity in the euro zone expanded at a faster rate than expected in July, easing concerns over the region’s growth outlook, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 51.9 this month, up from a final reading of 51.8 in June. Analysts had expected the index to ease down to 51.7 in July.
Meanwhile, the preliminary services purchasing managers’ improved to a seasonally adjusted 54.4 in July from a reading of 52.8 in June. Analysts had expected the index to dip to 52.7 this month.
The seasonally adjusted Markit Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 52.8 in June to a three-month high of 54.0 in July.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “Even with the resumption of stronger growth, the survey data suggest the region’s GDP is expanding at a modest pace of approximately 0.4% per quarter.”
Following the release of the data, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.05% to trade at 1.3470, compared to 1.3473 ahead of the report.
Meanwhile, European stock markets remained lower. The DJ Euro Stoxx 50 dipped 0.25%, Germany's DAX fell 0.45%, France’s CAC 40 declined 0.25%, while London’s FTSE 100 slumped 0.3%.