Investing.com - Manufacturing activity in France contracted at a faster rate than expected in November, fuelling concerns over the economic outlook of the euro zone’s second largest economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary French manufacturing purchasing managers’ index fell to a seasonally adjusted 47.6 this month from a final reading of 48.5 in October. Analysts had expected the index to rise to 48.9 in November.
Meanwhile, the preliminary services purchasing managers’ index improved to a seasonally adjusted 48.8 this month from 48.3 in October and better than expectations for a reading of 48.6.
The seasonally adjusted Markit Flash France Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 48.2 in October to 48.4 in November.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “Increased government spending helped support a 0.3% rise in third quarter GDP, but the continued softness in private sector activity signaled by the PMIs suggests an ongoing drag on growth during the fourth quarter from this area of the economy."
EUR/USD was trading at 1.2555 from around 1.2537 ahead of the release of the data, while EUR/GBP was at 0.8019 from 0.8009 earlier.
Meanwhile, European stock markets were mildly lower after the open. France’s CAC 40 shed 0.2%, the DJ Euro Stoxx 50 lost 0.3%, Germany's DAX slumped 0.2%, while London’s FTSE 100 declined 0.1%.