Investing.com - Manufacturing activity in France contracted unexpectedly in December according to data released on Tuesday, fuelling concerns over the outlook for the euro zone’s second largest economy.
Research group Markit said its preliminary French manufacturing purchasing managers’ index fell to 47.9 this month from a final reading of 48.4 in November. Analysts had expected the index to tick up to 48.6.
The preliminary reading of the services PMI improved to four month high of 49.8 from a final reading of 47.9 last month, and ahead of expectations for 48.3.
The composite output index, which measures the combined output of both the manufacturing and service sectors rose to four month high of 49.1 from 47.9 in November.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The French private sector economy remained in contraction in the final month of 2014, as has been the case since May. However, the rate of decline in output eased to a marginal pace as the service sector moved towards stabilization”, Jack Kennedy, senior economist at Markit said.
EUR/USD was steady at 1.2452 following the release of the data.
European stock markets were slightly higher after the open. France’s CAC 40 was up 0.24%, the DJ Euro Stoxx 50 rose 0.30%, Germany's DAX eased up 0.09%, while London’s FTSE 100 added 0.28%.