Investing.com - Manufacturing activity in France contracted at the fastest pace in seven months in July, underlining 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 48.2 in June. Analysts had expected the index to dip to 48.1 in July.
Meanwhile, the preliminary services purchasing managers’ index improved to a seasonally adjusted 50.4 this month from 48.2 in June and better than expectations for a reading of 48.4.
The seasonally adjusted Markit Flash France Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 48.1 in June to a three-month high of 49.4 in July.
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, “PMI data remain consistent with quarterly GDP close to stagnation levels, as the economy continues to show little sign of turning around its recent sluggish performance.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.07% to trade at 1.3453, compared to 1.3450 ahead of the data.
Meanwhile, European stock markets were modestly lower after the open. The DJ Euro Stoxx 50 dipped 0.1%, France’s CAC 40 declined 0.1%, London’s FTSE 100 slumped 0.1%, while Germany's DAX fell 0.1%.