German Manufacturing Expands As Estimated; France Contracts

(RTTNews) - The German manufacturing sector returned to growth, as initially estimated in December, as new orders expanded for the first time in four months, final data from Markit Economics showed Friday.

Meanwhile, the French manufacturing sector contracted more than initially estimated to a four-month low in December.

Germany's Purchasing Managers' Index rose to 51.2, in line with flash estimate, from November's 17-month low of 49.5.

Output growth accelerated and new orders returned to growth in December, ending a three-month period of contraction. Staffing levels rose at the second-strongest rate in nearly three years.

"Some relief was offered by December's survey results, as the PMI edged back into expansion territory and new orders returned to growth," Oliver Kolodseike, economist at Markit and author of the report said.

At the same time, the French manufacturing sector continued to contract in December. The PMI dropped to 47.5 in December from 48.4 in November.

The score was also below the flash estimate of 47.9 and marked the sharpest deterioration since August.

French manufacturing output declined at the fastest pace in five months and new orders decreased further in December. The rate of job shedding was the fastest since August.