Investing.com - Manufacturing activity in Germany expanded at a faster rate than expected in July, 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 52.9 this month from a final reading of 52.0 in June. Analysts had expected the index to hold steady at 52.0 in July.
Meanwhile, the preliminary services purchasing managers’ index improved to a 37-month high of 56.6 this month, up from a reading of 54.6 in June. Analysts had expected the index to ease down to 54.5 in July.
The seasonally adjusted Markit Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 54.0 in June to a three-month high of 55.9 in July.
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 headline index suggests that growth in the euro zone’s largest economy has re-accelerated, having slowed in the previous two months.”
Following the release of the data, the euro erased losses against the U.S. dollar, with EUR/USD inching up 0.01% to trade at 1.3463, compared to 1.3451 ahead of the data.
Meanwhile, European stock markets remained lower. Germany's DAX fell 0.35%, France’s CAC 40 declined 0.25%, the DJ Euro Stoxx 50dipped 0.2%, while London’s FTSE 100 slumped 0.25%.