Investing.com - Manufacturing activity in Germany expanded at a faster rate than expected in August, 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 dipped to a seasonally adjusted 52.0 this month from a final reading of 52.4 in July. Analysts had expected the index to decline to 51.8 in August.
Meanwhile, the preliminary services purchasing managers’ index inched down to a seasonally adjusted 56.4 this month from July's 37-month high of 56.7. Analysts had expected the index to fall to 55.7 in August.
The seasonally adjusted Markit Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors declined from 55.7 in July to a two-month low of 54.9 in August.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “The PMI data available for the third quarter so far point to a swift recovery in GDP from the ground lost during the second quarter."
Following the release of the data, the euro added to gains against the U.S. dollar, with EUR/USD inching up 0.08% to trade at 1.3273, compared to 1.3259 ahead of the data.
Meanwhile, European stock markets were mixed. Germany's DAX inched down 0.1%, France’s CAC 40 rose 0.1%, the DJ Euro Stoxx 50 tacked on 0.1%, while London’s FTSE 100 advanced 0.1%.