Investing.com - Manufacturing activity in Germany expanded at a slower rate than expected in June, dampening optimism over the health of the euro zone’s largest economy, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index rose to a seasonally adjusted 52.4 this month from a final reading of 52.3 in May. Analysts had expected the index to inch up to 52.5 in June.
Meanwhile, the preliminary services purchasing managers’ index weakened to a three-month low of 54.8 this month, down from a reading of 56.0 in May. Analysts had expected the index to ease down to 55.7 in June.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Pollyanna De Lima, Economist at Markit said, “The economic recovery remained broad-based by sector, as robust data were registered across the manufacturing and service sectors.”
Following the release of the data, the euro turned lower against the U.S. dollar, with EUR/USD shedding 0.06% to trade at 1.3593, compared to 1.3601 ahead of the data.
Meanwhile, European stock markets added to losses. The Euro Stoxx 50 dipped 0.8%, France’s CAC 40 declined 0.6%, London’s FTSE 100 slumped 0.45%, while Germany's DAX fell 0.85%.