Investing.com - French private sector activity grew at the slowest pace in four months in December, underlining concerns over the economic outlook of the euro zone’s second largest economy, preliminary data showed on Wednesday.
Markit said that its seasonally adjusted Flash France Composite Output Index, which measures the combined output of both the manufacturing and service sectors declined from 51.0 in November to 50.3 in December, the weakest in four months and missing forecasts for 50.9.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 50.0 this month, an 11-month low. The reading came in below expectations for 50.8 and down from 51.0 in November.
Service providers indicated the slowest rise in new work since August, with some panelists citing an adverse impact following the recent terrorist attacks.
In contrast, the French manufacturing purchasing managers’ index inched up to a seasonally adjusted 51.6 this month, a 21-month high, beating expectations for 50.5 and up from 50.6 a month earlier.
Manufacturers noted the fastest increase in new orders for 21 months. New export orders received by manufacturers rose fractionally, following a decrease in the previous survey period.
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, "PMI data for the fourth quarter as a whole suggest that GDP growth is likely to have remained at a similar moderate pace to the 0.3% rise seen in the previous quarter."
EUR/USD fell to 1.0932 from around 1.0940 ahead of the release of the data, while EUR/GBP was at 0.7268 from 0.7272 earlier.
The Investing.com euro index, which tracks the single currency against a basket of six major rivals, dipped to 87.92, compared to 87.97 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%.