Germany: Composite PMI hits highest reading since May 2022 in March
The flash reading of the S&P Global Composite Purchasing Managers’ Index (PMI) came in at 52.6 in March, up from February’s 50.7. March’s result marked the best performance since May 2022. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in private sector operating conditions compared to the previous month.
The Manufacturing PMI clocked in at 44.4 in March, down from February’s 46.3. Lastly, the services PMI activity index rose to 53.9 in March (February: 50.9).
The print suggests a less dark economic outlook than had earlier been expected. After declining for seven months, business conditions improved for the second consecutive month. After falling for eight months in a row, manufacturing output grew for the second consecutive month, and services output grew at the fastest pace in 10 months. Furthermore, employment continued to rise in both sectors. Meanwhile, output inflation fell in both sectors. However, although input inflation turned negative in the manufacturing sector, in the services sector input inflation remained elevated.