Investing.com - Service sector activity in France contracted at a faster rate than initially expected in November, hitting a five-month low, revised data showed on Wednesday.
In a report, market research group Markit said that its final French services purchasing managers’ index fell to a seasonally adjusted 48.0 in November, down from a preliminary reading of 48.0 and compared to 50.9 in October.
Analysts had expected the final reading to hold steady at 48.8.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “The latest data highlight the risk of a further contraction in GDP during the fourth quarter, which would tip France back into recession.”
Following the release of the data, the euro was modestly lower against the U.S. dollar, with EUR/USD easing down 0.01% to trade at 1.3587.
Meanwhile, European stock markets were mixed after the open. The EURO STOXX 50 fell 0.1%, France’s CAC 40 rose 0.2%, London’s FTSE 100 was down 0.1%, while Germany's DAX added 0.15%.
In a report, market research group Markit said that its final French services purchasing managers’ index fell to a seasonally adjusted 48.0 in November, down from a preliminary reading of 48.0 and compared to 50.9 in October.
Analysts had expected the final reading to hold steady at 48.8.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Jack Kennedy, Senior Economist at Markit said, “The latest data highlight the risk of a further contraction in GDP during the fourth quarter, which would tip France back into recession.”
Following the release of the data, the euro was modestly lower against the U.S. dollar, with EUR/USD easing down 0.01% to trade at 1.3587.
Meanwhile, European stock markets were mixed after the open. The EURO STOXX 50 fell 0.1%, France’s CAC 40 rose 0.2%, London’s FTSE 100 was down 0.1%, while Germany's DAX added 0.15%.