Investing.com - French private sector activity expanded for an eleventh consecutive month in May, boosting the economic outlook of the euro zone’s second largest economy, according to data released on Tuesday.
The preliminary reading of the Markit services purchasing managers’ index rose to a six year high of 58.0 this month from 56.7 in April.
Economists had forecast a reading of 56.5.
The manufacturing PMI eased slightly, ticking down to 55.8, compared to expectations for 55.2 and from 55.1 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors rose to 57.6, the highest level in six years from 56.6 in April, beating expectations for 56.7.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The latest PMI data points to further strong growth momentum in the French private sector, with the expansion quickening to a six-year peak,” Alex Gill, economist at survey compiler Markit said.
“The numbers continue to paint a positive picture of the French private sector economy.”
EUR/USD was at 1.1242 from around 1.1224 ahead of the release of the data, while EUR/GBP was at 0.8664 from 0.8653 earlier.