Investing.com - German private sector activity grew at the fastest pace in three months in November, boosting optimism over the health of the euro zone’s largest economy, preliminary data showed on Monday.
Markit said that its seasonally adjusted Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors improved from 54.2 in October to 54.9 in November, beating forecasts for a reading of 54.0.
The preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 52.6 this month from a final reading of 52.1 in October. Analysts had expected the index to inch down to 52.0 in November.
Meanwhile, the preliminary services purchasing managers’ index rose to a seasonally adjusted 55.6 in November from 54.5 in the prior month. Analysts had expected the index to dip to 54.3.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Stronger growth was mainly driven by a sharp upturn in activity at service providers, where the rate of increase was the most marked in 14 months. Meanwhile, manufacturing output rose at the weakest rate since July.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “PMI data available for the fourth quarter so far point to further modest, albeit unspectacular growth, of the German economy."
EUR/USD was trading at 1.0638 from around 1.0632 ahead of the release of the data, while EUR/GBP was at 0.7015 from 0.7012 earlier.
The Investing.com euro index, which tracks the single currency against a basket of six major rivals, was at 85.76, compared to 85.73 ahead of the report.
Meanwhile, European stock markets were lower after the open. Germany's DAX slumped 0.45%, the EURO STOXX 50 declined 0.65%, France’s CAC 40 shed 0.8%, while London’s FTSE 100 dropped 0.9%.