German manufacturing sector expanded at a slower than expected rate in January while French manufacturing activity contracted at a slightly faster than expected pace though the rate of contraction was slowest in eight months, final data from Markit Economics showed Monday.
Germany's Purchasing Managers' Index fell to 50.9, less than the flash estimate of 51, from December's 51.2.
Output growth accelerated in January, rising for the twenty first successive month. New orders also increased, though at a marginal rate. Staffing levels continued to rise but the rate of job creation slowed.
"With input costs falling at the quickest pace since mid-2009 amid low oil and energy prices, manufacturers were able to further reduce their selling prices, " Oliver Kolodseike, economist at Markit and author of the report said.
"As lower oil prices are starting to feed through from the factory gate to the consumer, we should hopefully see an uplift in economic growth in coming months, "
At the same time, the French manufacturing PMI rose to 49.2 in January from 47.5 in December, marking the slowest pace of contraction in eight months.
However, the score was slightly below the flash estimate of 49.3.
Production fell for the eighth consecutive month but at the slowest rate in the sequence. New orders fell at the slowest pace since May. Continuing the trend started in April 2014, employment levels fell further in January.
For comments and feedback: editorial@rttnews.com