Investing.com - Manufacturing activity in Germany rebounded in December after slipping into contraction territory a month earlier, but service sector output expanded at the slowest rate in 17 months, according to data released on Tuesday.
Research group Markit said its preliminary German manufacturing purchasing managers’ index rose to a two month high of 51.2 this month from a final reading of 49.5 in November. Analysts had expected the index to tick up to 50.4.
The preliminary reading of the German services PMI slid to a 17-month low of 51.4 from a final reading of 52.1 last month, compared to expectations for an increase to 52.6.
The composite output index, which measures the combined output of both the manufacturing and service sectors, fell to an 18-month low of 51.4 from 51.7 in November.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“Overall, the data are consistent with only marginal GDP growth in the fourth quarter at best, with the average PMI reading in the latest three months the weakest since the second quarter of 2013”, Oliver Kolodseike, economist at Markit said.
“The possibility of a renewed downturn at the start of next year is clearly becoming more and more likely, especially if the survey data continue to disappoint.”
EUR/USD was at 1.2474 from 1.2464 ahead of the release of the data.
European stock markets turned lower, giving up earlier small gains. France’s CAC 40 fell 0.70%, the DJ Euro Stoxx 50 was down 0.91%, Germany's DAX fell 0.78%, while London’s FTSE 100 slid 0.31%.