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German manufacturing PMI deteriorates to 48.9 in March

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Investing.com - Manufacturing activity in Germany in March contracted unexpectedly, falling to a three-month low, while service sector activity fell to a four-month low, preliminary data showed on Thursday.

In a report, market research group Markit said that its preliminary German manufacturing purchasing managers' index fell to a seasonally adjusted 48.9 in March from a final reading of 50.3 in February.

Analysts had expected the index to ease up to 50.5 in March.

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

Meanwhile, the report showed that service sector activity in Germany expanded at the slowest rate in four months in March.

The preliminary services purchasing managers' index fell to a seasonally adjusted 51.6 from a reading of 54.7 in February. Analysts had expected the index to ease up to 55.0.

Commenting on the report, Tim Moore, Senior Economist at Markit said, "More worrisome still, the majority of survey responses were received ahead of the recent bailout vote in Cyprus, suggesting any immediate negative influence on client spending has yet to fully feed through into the PMI data."

Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.31% to trade at 1.2895.

Meanwhile, European stock markets were lower after the open. The EURO STOXX 50 declined 0.6%, France's CAC 40 dropped 0.7%, London's FTSE 100 dipped 0.5%, while Germany's DAX slumped 0.5%.

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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.


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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