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French factory activity grows at slowest pace in 3 months in November

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Investing.com -

Investing.com - French private sector activity grew at the slowest pace in three months in November, underlining concerns over the economic outlook of the euro zone's second largest economy, preliminary data showed on Monday.

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 52.6 in October to 51.3 in November, the weakest in three months and missing forecasts for 52.5.

The preliminary services purchasing managers' index fell to a seasonally adjusted 51.3 this month, also a three-month low. The reading came in below expectations for 52.6 and down from 52.7 in October.

Some service providers reported that the terrorist attacks in Paris had negatively impacted on activity.

Meanwhile, the French manufacturing purchasing managers' index inched up to a seasonally adjusted 50.8 this month, matching expectations and up from a final reading of 50.6 in May.

However, manufacturers' new export orders fell for the first time in three months, and at the fastest pace since April.

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, " While the longer-term economic impact following the Paris attacks remains uncertain, PMI data suggest that GDP is on course to post another modest expansion in Q4 following the 0.3% growth reported in the third quarter."

EUR/USD was trading at 1.0627 from around 1.0625 ahead of the release of the data, while EUR/GBP was at 0.7013 from 0.7017 earlier.

The Investing.com euro index, which tracks the single currency against a basket of six major rivals, was at 85.72, compared to 85.71 ahead of the report.

Meanwhile, European stock markets were lower after the open. France's CAC 40 shed 0.3%, the EURO STOXX 50 dipped 0.25%, Germany's DAX declined 0.2%, while London's FTSE 100 slumped 0.75%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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