Investing.com - Private sector output in Germany expanded at a faster pace than expected in November, fueling optimism over the health of the euro zone's largest economy, preliminary data showed on Thursday.
Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 56.6 in October to 57.6 in November, beating forecasts for 56.7.
The preliminary German manufacturing purchasing managers’ index climbed to an 81-month high of 62.5 from a final reading of 60.6 in October. Analysts had expected the index to slip to 60.4 in November.
Inflows of new orders showed the strongest rise in over six-and-a-half years, leading businesses to take on staff at one of the fastest rates in the 20-year history of the composite series.
The flash services purchasing managers’ index rose to 54.9 this month from 54.7 in October, but below expectations for a reading of 55.5.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Phil Smith, Principal Economist at Markit, said, “The German economy is going great guns, with manufacturing enjoying one of the best growth spurts seen over the past two decades."
EUR/USD was at 1.1842 from around 1.1833 ahead of the release of the data, while EUR/GBP was at 0.8894 from 0.8890 earlier.
Meanwhile, European stock markets were mostly lower after the open. Germany's DAX fell 0.4%, the EURO STOXX 50 dipped 0.2%, France’s CAC 40 inched down 0.1%, while London’s FTSE 100 declined 0.5%.