Forex Pros – Manufacturing activity in the euro zone rose unexpectedly in February, advancing to the highest level since June 2000, preliminary data showed on Monday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers index rose to a seasonally adjusted 59.0 in February, up from 57.3 in January, whose figure was revised up from 56.9.
Analysts had expected the index to decline to 57.0 in February.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report also said that service sector activity in the euro zone increased more-than-expected in February, rising to the highest level since August 2007.
The preliminary services purchasing manager’s index rose to a seasonally adjusted 57.2 in February, up from 55.9 in January, whose figure was revised up from 55.2.
Analysts had expected the index to rise to 56.0 in February.
Commenting on the report, Chris Williamson, chief economist at Markit said, “While growth continued to be led by Germany, the February survey also brought welcome news of real signs of life in the region’s periphery, with manufacturing output growth picking up sharply on the back of rising exports. Growth divergences are therefore starting to narrow.”
He added, “Less welcome are the signs of inflationary pressures building up, with input costs and selling prices showing the fastest rates of increase since mid-2008.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.02% to hit 1.3690.
Meanwhile, European stock markets were mixed. The EURO STOXX 50 fell 0.24%, France’s CAC 40 gained 0.11%, the FTSE 100 was up 0.37%, while Germany’s DAX edged up 0.15%.
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