Investing.com - German service sector activity grew at the slowest pace in more than a year in August, fueling concerns over the health of the euro zone largest economy, preliminary data showed on Tuesday.
The preliminary services purchasing managers’ index dropped to a 15-month low of 53.3 in August from 54.4 in the prior month. Analysts had expected the index to hold steady at 54.4.
The preliminary German manufacturing purchasing managers’ index fell to a two-month low of 53.6 this month from a final reading of 53.8 in July, but above forecasts for 53.5.
Markit said that its seasonally adjusted Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors declined to 54.4 in August from 55.3 in July, below expectations for 55.0.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “Nonetheless, the long-standing theme of solid economic growth in Germany continued in August and based on the survey data available for the third quarter so far, we should expect further steady GDP growth. It is unlikely that the 0.7% pace from the beginning of the year will be repeated, however."
EUR/USD was at 1.1346 from around 1.1348 ahead of the release of the data, while EUR/GBP was at 0.8602 from 0.8604 earlier.
Meanwhile, European stock markets were mildly higher after the open. Germany's DAX rose 0.25%, he EURO STOXX 50 tacked on 0.5%, France’s CAC 40 inched up 0.35%, while London’s FTSE 100 added 0.45%.