Manufacturing activity in Germany improved to the highest level in eight months in March, fuelling optimism over the health of the euro zone’s largest economy, preliminary data showed on Tuesday.
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 51.1 in
German manufacturing activity rises to 8-month high in March
February. Analysts had expected the index to inch up to 51.5 in March.
Meanwhile, the preliminary services purchasing managers’ index increased to a seasonally adjusted 55.3 this month from 54.7 in February. Analysts had expected the index to rise to 55.0 in March.
The seasonally adjusted Markit Flash Germany Composite Output Index, which measures the combined output of both the manufacturing and service sectors improved from 53.8 in February to 55.3 in March, an eight month high.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Oliver Kolodseike, Economist at Markit said, “It looks like the German economy is entering the economic fast lane again, with survey data suggesting that we should expect another quarter of solid GDP growth.”
EUR/USD was trading at 1.0984 from around 1.0976 ahead of the release of the data, while EUR/GBP was at 0.7348 from 0.7338 earlier.
Meanwhile, European stock markets turned higher. Germany’s DAX rose 0.35%, the EURO STOXX 50 tacked on 0.3%, France’s CAC 40 advanced 0.3%, while London’s FTSE 100 inched up 0.25%.