Investing.com - Manufacturing activity in Germany expanded at a faster rate than expected in October, easing concerns over the health of the euro zone’s largest economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 51.8 this month from a final reading of 49.9 in September. Analysts had expected the index to decline to 49.5 in October.
Meanwhile, the preliminary services purchasing managers’ index inched down to a seasonally adjusted 54.8 this month from 55.7 in September. Analysts had expected the index to fall to 55.0 in October.
The seasonally adjusted Markit Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors advanced from 54.1 in September to 54.3 in October.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “There are still some uncertainties about the near-term. New orders increased at the slowest pace in over a year and service providers reported a sharp drop in sentiment, suggesting that output growth may come under pressure in coming months.”
EUR/USD was trading at 1.2644 from around 1.2621 ahead of the release of the data, while EUR/GBP was at 0.7880 from 0.7872 earlier.
Meanwhile, European stock markets remained lower. The DJ Euro Stoxx 50 lost 0.6%, France’s CAC 40 shed 0.8%, Germany's DAX slumped 0.7%, while London’s FTSE 100 declined 1%.