Investing.com - German private sector activity grew at the slowest pace in two months in December, dampening optimism over the health of the euro zone’s largest economy, preliminary data showed on Wednesday.
Markit said that its seasonally adjusted Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors declined from 55.2 in November to 54.9 in December, below forecasts for a reading of 55.3.
The preliminary German manufacturing purchasing managers’ index inched up to a seasonally adjusted 53.0 this month from a final reading of 52.9 in November, in line with expectations.
Meanwhile, the preliminary services purchasing managers’ index dipped to a seasonally adjusted 55.4 in December from 55.6 in the prior month. Analysts had expected the index to ease down to 55.5.
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 data points to an acceleration of GDP growth from the 0.3% seen in the third quarter."
EUR/USD fell to 1.0935 from around 1.0939 ahead of the release of the data, while EUR/GBP was at 0.7275 from 0.7277 earlier.
The Investing.com euro index, which tracks the single currency against a basket of six major rivals, dipped to 87.96, compared to 87.98 ahead of the report.
Meanwhile, European stock markets were higher after the open. France’s CAC 40 tacked on 0.15%, the EURO STOXX 50 rose 0.2%, Germany's DAX added 0.15%, while London’s FTSE 100 inched up 0.3%.