Investing.com - Private sector output in Germany expanded at the slowest pace in six months in July, dampening optimism over the euro zone's largest economy, preliminary data showed on Monday.
Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors fell from 56.4 in June to 55.1 in July, missing forecasts for 56.3.
The overall rate of expansion was the weakest since January, a trend reflected in both manufacturing output and services business activity.
The preliminary German manufacturing purchasing managers’ index inched down to a three-month low of 58.3 this month from a final reading of 59.6 in June. Analysts had expected the index to dip to 59.2 in July.
The flash services purchasing managers’ index declined to a six-month low of 53.5 this month from 54.0 in June, disappointing expectations for a reading of 54.3.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Despite the disappointing data, Trevor Balchin, Senior Economist at Markit, said, “IHS Markit’s full-year forecasts for GDP growth in both 2017 and 2018 remain at 2.0% in calendar-adjusted terms, the strongest since 2011.”
EUR/USD was at 1.1644 from around 1.1652 ahead of the release of the data, while EUR/GBP was at 0.8950 from 0.8960 earlier.
Meanwhile, European stock markets were mildly lower after the open. Germany's DAX fell 0.3%, he EURO STOXX 50 dipped 0.2%, France’s CAC 40 was flat, while London’s FTSE 100 declined 0.4%.