Forexpros – Germany’s services sector expanded at a faster pace than initially estimated, rising to a four-month high, data showed on Wednesday.
In a report, the market research group, Markit said the final German services purchasing managers index rose to 52.1 in March, up from a preliminary estimate of 51.8.
Analysts had expected the index to remain unchanged from a preliminary estimate of 51.8.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Increased service sector output has now been recorded for six months running, but the strength of the upturn has moderated from January’s recent high amid subdued intakes of new work.
Job creation at service providers was recorded for the twenty-sixth successive month in March, which means that the current period of growth is the second-longest since the survey began in mid-1997.
Service providers reported that input cost inflation reached a nine-month high in March amid rises in fuel prices and staff wages.
Commenting on the report, Tim Moore, senior economist at Markit said, “Germany’s latest PMI readings are tinged with a mixture of disappointment in the slowing recovery and yet relief that growth has returned at all in the first quarter.”
“A slower increase in output during March nonetheless leaves the survey consistent with a rather pedestrian 0.2% quarterly rise in German GDP.”
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.39% to trade at 1.3182.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.1%, France’s CAC 40 dropped 1.1%, London’s FTSE 100 fell 0.6%, while Germany’s DAX sank 1.35%.
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